Pakistan President Pervez Musharraf called for creating a mechanism within the South Asian Association for Regional Cooperation (Saarc) to tackle and resolve problems and disputes among member states.

"We feel there is need to expand our (Saarc) charter to constitute a mechanism to even discuss bilateral issues at the regional level," Musharraf said in a speech at a banquet for the leaders of the South Asian nations.

"We owe it to our peoples; let us make a solemn pledge not to disappoint them. If we fail cynicism will take over and our organisation will lose credibility and momentum."

Apparently referring to India, Musharraf underlined Pakistan's desire for peaceful resolution of all problems with the rival nuclear neighbour.

"We wish to address all problems and disputes boldly with objective of seeking honourable solution based on mutual respect and a spirit of accommodation. We look for similar commitment and sincerity of purpose from all," he told the guests, including Indian Prime Minister Atal Bihari Vajpayee. Pointing to "dismal" social indicators in Saarc region.

Mushaarraf attributed it to dissipation of energies in internal and external political conflicts.

"We have to build courage and show determination to seize the moment and avail ourselves of this historic opportunity to assure for our people a life of ease, contentment and dignity."
Pakistan he said was prepared to "play its role fully."

"The bitter truth is that Saarc will never achieve its potential unless the disputes and tensions that draw us apart are resolved peacefully with justice and equity. "There can be no development in the absence of peace; there can be no peace so long political issues and dispute continue to fester.

"Elimination of the root causes of tension and peaceful resolution of our disputes and differences are essential steps towards embracing a vision of cohesive and integrated Saarc to which we all subscribe and we all yearn for."