A solution, he expressed could be found if the two countries sat across the table and engaged in negotiations involving the Kashmiris. Any solution would have to be acceptable to all the three parties - India, Pakistan, and the people of Kashmir, Aziz said adding, "Otherwise it will not work."
Pleading for greater flexibility in the negotiations and against ruling out one course or another, Pak High Commissioner maintained, "Let us not try to already determine where we are going or where we cannot go. Let us be flexible, open-minded and honest about it."
In response to a query, he said that in his "personal, honest opinion" a plebiscite was the most democratic and simple way of finding a solution. But as India would not agree to it, the alternative was to "sit down and slog it."
It might take a long time, but if the two sides were sincere and serious, a solution could be found, he viewed.
"This time I feel that both sides have shown that degree of sincerity and seriousness. And I think, difficult as it might be, if we continue with a positive mindset we can resolve the problem," he said continuing, once the Kashmir problem was out of the way, the "sky is the limit" for economic co-operation between the two countries.
To a question on the proposed bus service between Srinagar (India held Kashmir) and Muzaffarabad, he said this was mooted as a confidence building measure for Kashmir. Talks could sort out the problems on the issue.
On the Baglihar dam, the Pakistan High Commissioner said that India wanted the issue to be resolved bilaterally, but the treaty provided for it being referred to a neutral expert in case of disagreement. "The treaty prescribes a procedure. We should adhere to it."
India had gone ahead with construction despite being told that this was in violation of the treaty, he said, adding, the dam could stop the flow of water to Pakistan or flood the country for three weeks. Pakistan protested immediately as it did not want to be provided with a fait accompli, he added.
He said the balance of trade was now in favour of India. As Pakistan did not subsidise agriculture or power supply, its farmers were at a disadvantage. Pakistani traders were no longer afraid to trade with India, he added.
On the South Asian Free Trade Agreement, Khan said several rounds of discussions had been held, and it would come into effect from January 1 next year.
He expressed the hope that soon some agreement on confidence building measures over nuclear and conventional weapons would be reached adding, "the talks are moving very positively."