Seeking to lower temperatures, Pakistan President Asif Ali Zardari [Images] on Saturday said Pakistan is not talking of war or vengeance and that dialogue is the solution for all issues in the region.

"We do not talk of war or vengeance, the whole region will suffer in case of war," Zardari told ministers and lawmakers at the Naudero family home of his wife, former premier Benazir Bhutto [Images] who was assassinated one year ago in a gun and suicide attack.

Zardari said his country would act to rein in extremist groups but made it clear to India that terms for taking such action cannot be dictated to Pakistan.

"Please do not test our mettle. It has been tested many times..we will do it on our own time, not on your demarche," he said. 

New Delhi [Images] has held Pakistan-based militant group Lashkar-e-Toiba responsible for masterminding the November 26 terror strikes in Mumbai and accused Islamabad [Images] of taking only "token action" against them.

"I want to tell the oldest democracy and the largest democracies of this world -- listen to us, learn from us. We have experiences to share with you," the Pakistani president said.

Admitting that there were "non-state actors" in Pakistan, he said no one should fall for there designs. "Yes, we have non-state actors. Yes, they are forcing an agenda on us," he said warning if they were allowed to succeed "you will be the victim, we will be the victim, the region will be the victim".

We have lost our people -- we do not talk about war, we do not talk about vengeance," he said.

Zardari's lowering of the pitch also came after the Indian leadership bluntly told Pakistan to desist from whipping up "war hysteria" while asking it to take firm and transparent action against those involved in the Mumbai attacks.

 The escalation of tensions between the two countries spurred the U S to lead international calls for restraint  "Every tragedy is an opportunity. Today the world is looking at us", he said.

 "We have shortcomings. We need more help...we will cure it, we will solve it, we will correct it," he said.

Read all about the Mumbai Terror Attacks