Asserting that the Kashmir issue has not been put on the backburner in the composite dialogue process with India, Pakistan said on Monday that settlement of the issue was possible despite differences in perception between the two countries.

"The composite dialogue has Jammu and Kashmir [Images] as a very important subject and it remains focused on that," Pakistan Foreign Secretary Riaz Muhammad Khan said, after the first round of talks between External Affairs Minister Natwar Singh and his Pakistani counterpart Khurshid Mohamed Kasuri.

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Responding to a question on whether Kashmir issue had been put on the backburner, he told reporters that 'this is incorrect'.

Khan said the matter could not be put on the backburner as it dealt with fundamental rights of the Kashmiri people.

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"There are differences of perception, but it shall be possible to find common ground and reach a settlement," Khan said, in response to a barrage of questions on the progress of talks on Kashmir.

He said both the countries had agreed to carry forward the peace process and to 'maintain the integrity of the composite dialogue process'.

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Khan said Singh and Kasuri held detailed discussions in a 'congenial atmosphere', both in formal and informal interactions, including the one-to-one meeting at Nathiagali.

"We are not only dealing with it at the composite dialogue level, but also at the leadership level," he said. He said both sides had reaffirmed, at various levels, their determination to carry forward the peace process.

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He said Pakistan would like to settle the Kashmir issue at a faster pace and added that things were moving forward. "We will like to see expeditious progress on all issues," Khan said.

When questioned about the different perceptions of both sides on the issue, the foreign secretary said, "We have to proceed on the basis of hope and trust." 

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He said there was sincerity on both sides to resolve long-standing issues acceptable to all stakeholders. "Pakistan will not accept any LoC-based solution, which is also not acceptable to Kashmiris," he said.

To a question on cross-border terrorism, Khan said, "There is no cross-border terrorism taking place."

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He said during the informal round of talks at Nathiagali, Pakistan made a reference to human rights violations in Kashmir.

Khan said despite differences in perception, 'if both sides show determination and flexibility, it should be possible to find a common ground and reach a settlement.'

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