Pakistan will not sideline the Kashmir issue or compromise its honour and dignity, President Pervez Musharraf has said.

"Pakistan will never get coerced," Musharraf insisted at a dinner hosted in honour of the participants of the Pakistan Development Forum on Wednesday night.

He, however, said his country will not exclusively focus on Kashmir and is ready to have a 'composite dialogue' with India to resolve all outstanding issues. "There is a thaw in India-Pakistan relations. We welcome it," he said. Islamabad, he added, desired peace and harmony in the region and stood for economic progress.

But he refused to elaborate further saying it was better that he left Prime Minister Mir Zafarullah Jamali to deal with the normalisation process.

Musharraf has stepped up his interaction with Jamali ever since the visit of US Deputy Secretary of State Richard Armitage to India and Pakistan. He met Jamali twice in the last 24 hours to discuss the Indo-Pak peace process.