Musharraf also said that he would nominate Indian Prime Minister Atal Bihari Vajpayee for his country's highest civilian honour, the Nishan-e-Pakistan, if the two neighbours moved towards solving the Kashmir dispute.

Replying to questions from listeners on BBC's radio programme Aapki Baat BBC Ke Saath broadcast on Monday, Musharraf said, "India has seven lakh soldiers in Kashmir, whereas Pakistan has only fifty thousand. If Indian government is ready to remove their forces, we will remove ours tomorrow."

When reminded by a listener about the Nishan-e-Pakistan conferred on former Prime Minister Morarji Desai and asked whether his country would like to confer the honour on any Indian today, Musharraf said "I would like to nominate Vajpayee Sahib for it if we move forward towards solving the Kashmir issue."

"If there is an achievement, which is significant from Pakistan's point of view, we would like to honour anyone," he added.

Musharraf said he was optimistic about next month's SAARC summit in Islamabad as it was taking place as scheduled despite early uncertainties.

"Prime Minister Vajpayee will participate and will meet with all the leaders. I am also hopeful that maybe talks (will) take pace, and whatever talks take place, they would be effective, useful and point to a good future," Musharraf said.

Asked whether he would meet Vajpayee, he replied, "Yes, if he wants to meet me, I will meet him."

"I am saying he should not get an impression, that since I have been saying this time and again, I am desperate to meet him. Let me tell you, I am living here and sitting comfortably there is no problem. I would meet him only if he wants."

Dismissing Deputy Prime Minister L K Advani's charge that cross-border terrorism had not stopped, Musharaf said "even if two birds fly (across the border), they would say infiltration is taking place."

He said India had often alleged that infiltration was taking place under the cover of firing by Pakistani forces.

"Now there is no firing on the LoC, so how is the infiltration taking place," Musharraf asked.

Last week, India and Pakistan announced a ceasefire along the LoC and International Border in Jammu and Kashmir. Yesterday, they decided to restore civilian aviation links and overflights from New Year's Day.

Musharraf said he hoped the Agra fiasco would not be repeated as Indo-Pak relations were again moving ahead. "Everyone should hope in the same direction, that the process of dialogue moves forward."

But Musharraf cautioned that there should be no room for complacency.

"Remember it is the beginning of an end. We would have to be extremely careful, and with sincerity we should move forward in this process of dialogue," Musharraf said.

"I am confident that if we have the sincerity, then we can move forward leaving all this behind. If there has been bitterness in the past, it is better to forget it and move ahead."

Asked whether the Pakistani National Assembly or President was the final authority on Kashmir, Musharraf said "Whatever be the decision on Kashmir, it would be of the Assembly, but the President can contribute."