He said the subsequent joint statement issued at the end of his visit to New Delhi, reflects the sincerity of intention to resolve the long-standing dispute.
The President told a special edition of PTV programme "Aap Kay Roo Baroo" aired on Wednesday evening that during his talks with the Indian Prime Minister, they did not set any particular timeframe. However, the President stressed, the peace opportunity should be availed within the tenures of the two leaders.
"If we have to seize the moment, it should be within our careers," he said, and underlined that a settlement of the dispute would have to be acceptable to Pakistan, India and the Kashmir.
The President underscored the crucial significance of addressing the underlying cause of tension between the two South Asian neighbours, saying harmony between the leadership at a particular point of history does not guarantee permanent peace.
"The past accords including the Tashkent Declaration, the Simla Accord and the Lahore Declaration could not deliver as they did not address the core issue."
He said Prime Minister Manmohan Singh has shown sincerity of intent in moving towards a genuine settlement of the longstanding dispute. "There is a lot of common ground in our ideas," he said but cautioned that moving forward towards its final settlement is not easy. "There are a lot of grey areas (en route)".
President Musharraf pointed out that the bottom-line of Islamabad's policy on Kashmir is that the dispute should be resolved in accordance with the wishes of the Kashmiri people and the Line of Control cannot be accepted as a permanent border.
Responding to a question, he said the environment that existed during his recent visit to India, was far different from the one that prevailed at the time of the Agra Summit in 2001. "The situation has changed, then (Agra) it (climate) was of confrontation, hatred and acrimony and the two sides were meeting in anger." The climate now, he added, is that of harmony and the two leaders are in contact with each other.
President Musharraf referred to the joint statement and called it a "good document" that, for the first time, has covered all issues with a clear emphasis on "purposeful and meaningful" talks on Kashmir for its final settlement. "It is a good document as everything is in clear terms, he said. The statement also called for an immediate need to expeditiously resolve the issues of Siachen, Sir Creek, he added.
The President said it was Pakistan's proposal to open up new points at the LoC, stating that these would facilitate the Kashmiri people and provide them convenience and comfort in travelling. Similarly, he said, the idea of trade between the Kashmiri people of the two sides is meant to benefit them economically.
On human rights violation and atrocities in the occupied Kashmir, the President said he took up the matter with the Indian Prime Minister and emphasised the urgent need to bring an end to the ongoing oppression there. Both the sides felt that these violations should stop, he added. The President said that in the presence of over 600,000 troops, the human rights violations and atrocities were bound to occur. He said the military has to move out to give real comfort to the Kashmiri people.
Replying to a question, he said, it is clear now that both Pakistan and India cannot be coerced into accepting any given solution of Kashmir.
"Pakistan has full confidence in its potential and cannot be coerced," the President said while adding that there is also a realisation on the Indians side that there cannot be a settlement of the Kashmir dispute by force as well.
"'There is only one way (to solve the Kashmir dispute) - that is to find a peaceful settlement in a sincere and acceptable manner," he added.
Musharraf ruled out possibility of any unilateral flexibility on the lingering dispute, saying it has to be a two-way process.
Asked on India's stand of "no re-drawing of maps", the President said it has been made clear to the Indian leadership that Pakistan would never accept the LoC as a permanent border.
"They understand and they have acknowledged our stand," he added.
Emphasising the centrality of the Kashmir dispute in Pakistan-India ties, Musharraf said everything else would become irrelevant if it were not addressed.
"When I show optimism, it is in my intent. We need to proceed further with harmony and sincerity," he added.
About his meeting with the APHC leaders in New Delhi, the President described the interaction as useful.
He said the meeting of Kashmiri leaders on both sides of the LoC with the Pakistani and Indian leaders will be a positive development, which in a different way means trilateral participation.
He said the APHC leaders are unified in their opposition to the Indian occupation. "There are no differences among them on this point."
Answering a question about his meeting with senior APHC leader Syed Ali Gillani, the President said Gillani has contributed immensely to the cause of Kashmir and expressed the hope that Gillani would help unite the Hurriyat with an important role.
In response to another question, Musharraf said it is clear that there has to be in-tandem progress in the confidence building measures and dispute resolution.
On Baglihar Dam, he said it has been left to the neutral observers to look into the issue.