A joint statement read out by Indian Prime Minister Manmohan Singh next to Pakistan President Pervez Musharraf said the two countries allow movement of trucks to boost trade and start additional passenger bus routes across the divided Kashmir.

The two-point statement issued at the end of the three-day visit by Musharraf also said India and Pakistan have agreed to open meeting points for divided families, trade, pilgrimages and cultural interaction.

Earlier, addressing senior editors of Indian media, Musharraf said the military option is no more a solution for resolving disputes between India and Pakistan. He also advocated an 'out-of-the-box' solution to resolve the Kashmir issue 'without rigid timeframe', which is acceptable to the both sides and also to the Kashmiris.

The joint statement increases the frequency of the bus service launched this month -- seven between Srinagar and Muzaffarabad --, allow the route also for freight traffic and operationalise additional routes including Lahore-Amritsar and different religious places.

The two countries have also agreed to introduce rail link between Munabao in Rajasthan State of India and Khokrapar in Sindh province of Pakistan from January 1 next year. They would also open their Consulate General in Mumbai and Karachi by the end of this year.

The statement also condemned attempts to disrupt the Srinagar-Muzaffarabad bus service and hailed its successful launch.

It said Singh and Musharraf 'assessed positively' the progress made so far in bilateral relations through confidence-building, people-to-people contacts and enhancing areas of interactions and are determined to build on the momentum already achieved.

"Conscious of the historic opportunity created by the improved environment in relations and the overwhelming desire of the peoples of the two countries for durable peace and recognising their responsibility to continue to move forward towards that objective, the two leaders had substantive talks on all issues and determined that the peace process was now irreversible," said the statement.

"It was in this spirit the two leaders addressed the issue of Jammu and Kashmir and agreed to continue these discussions in a sincere and purposeful and forward looking manner for a final settlement," it added.

Musharraf said if Kashmir issue is not resolved, the situation can 'erupt' in future 'under different leadership and different environment' in the two countries.

"Right now, we're having a very good relationship with Prime Minister Manmohan Singh. But nobody is permanent in this world. Agreements meant nothing in different environment and different leadership. "We have reflected forward 10 years from now."

He said, "military option is not an option anymore. Coercive diplomacy is also not an option any more."

On the boundary issues involving the marshy salt land of Sir Creek in Arabian Sea and the Siachen Glacier in the Himalayas, the two countries agreed the existing institutional mechanisms should convene discussions immediately to find mutually acceptable solutions.

The two sides have also agreed that their ministers of petroleum and natural gas would meet in May to explore cooperation in the sector including on the issue of natural gas pipelines.

Singh and Musharraf have agreed that enhanced economic and commercial cooperation would contribute to the well-being of the peoples of their countries and bring a higher level of prosperity for the region.

India-born Musharraf invited Pakistan-born Singh to visit Pakistan that the Indian premier accepted in principle. Mutually agreed dates for his visit would be worked out through diplomatic channels.

Commenting on the outcome of his visit to India, Musharraf said, "Achievements are more than what we expected and both sides had adopted flexible approaches."

He said resolutions of all disputes have to be based on views of the people and 'it is the pulse of the people the governments have to take note of'.

When pointed out that there could no rigid timeframe for solving disputes, he said, "... there cannot be a rigid timeframe but you can't go on discussing indefinitely."

Musharraf said the $4.1-billion Iran-Pakistan-India gas pipeline is in the interest of both the countries.