India had earlier dropped its opposition to Pakistan's entry into the Asean Regional Forum (ARF) after Pakistan gave assurances it would not raise bilateral issues like Kashmir in the forum.

Pakistani Foreign Minister Kurshid Kasuri welcomed his country's accession to the grouping, which represents all the world's major powers, but said it should not be seen in the context of relations with India.

The real challenge, he said, was for diplomats of both sides to come forward with an acceptable solution involving the people of Kashmir.

"I don't want to go into specific solutions. It's not really going to be productive in terms of bringing about a solution to the dispute if we start talking about it (in the media)," Kasuri said.

"Pakistan and India should try to resolve issues peacefully because too much is at stake, both are nuclear powers, both have the means to deliver nuclear weapons.

"It is eminently sensible for them to do so (resolve issues. One-third of the world's poor after all do live in South Asia and it's largely because of continuing and persisting tension between Pakistan and India," he stressed.

India and Pakistan have fought three wars over Kashmir, a region in the northern Himalayas divided between the two states and claimed by both.

Pakistani and Indian diplomats met in New Delhi last week for talks aimed at coming up with solutions for a final settlement of the dispute.

"I think both governments realize the need to resolve the Kashmir issue," Kasuri said.

He said his country's inclusion in ARF was a recognition "that Pakistan is playing a very important role, not just in promoting stability in the Islamic world but also in regional and international peace."

Delegates at Friday's meeting agreed with Pakistan's statement that there was a need for the international community to engage the Islamic world and understand the root causes of terrorism.

Meanwhile, the foreign ministers of Pakistan and India emerged from talks here yesterday optimistic that trust between the two nations was growing and further progress had been made in resolving their long-running Kashmir dispute.

Pakistani Foreign Minister Kurshid Kasuri met his Indian counterpart, Natwar Singh, for 15 minutes on the sidelines of the Asean Regional Forum (ARF) in what was the two nations' second high-level diplomatic encounter in a week.