"This is the first time, I personally feel that other than the joint statements that we have given, there is intention and the will on part of the leadership of both the sides to resolve the disputes and not brush them under the carpet.
"If this continues than we will resolve the disputes and not manage then by brushing them under the carpet, we will reach a conclusion."
Referring to harmony and understanding between Indian Prime Minister Manmohan Singh and himself, the president expressed the desire that the decades-old dispute is resolved within the span of two leaders.
President Musharraf said the festering political disputes, illiteracy and poverty give rise to extremism and terrorism. He said the strategy of enlightened moderation offered a win-win situation for all. Under the strategy, he said, the Muslim world should renounce extremism and go for socio-economic development. But, he said, the US and the Western world would have to resolve the lingering political disputes in order to make the strategy work.
The president said that Pakistan has done more in the fight against terrorism than any other country, having apprehended over 7,000 terrorists and broken the back of al Qaeda.
"They cease to exist as a homogeneous organisation," he said, and praised Pakistan's intelligence and Army for their role in stamping out terrorists.
He recounted the events that resulted in spread of extremism in the region in the aftermath of 1979 Soviet invasion of Afghanistan, the world-supported 'Jihad' against it, the spread of tribal warlordism and the rise of the Taleban in the strife-torn Afghanistan.
He said that Pakistan played an important role in the world campaign against occupation of Afghanistan, but after the Soviet pullout, the country was left high and dry to fend for over four million Afghan refugees and, meanwhile, people from other parts of the world also sought refuge in Afghanistan. Pakistan, he said, is fighting terrorism in both its short- and long-term perspectives.
"We are fighting terrorism frontally with army and we would continue doing that until terrorism is wiped out of Pakistan," he said.
At the same time, he said, Pakistan is addressing the menace of extremism in its long-term perspective through poverty alleviation; mainstreaming Madressah into the education system, by checking misuse of mosques for spread of hatred and by curbing the publication and distribution of hate material.
President Musharraf said US President George Bush is conscious of the need to address political disputes and understands that conflict management is no more an option.
Musharraf said the people of Pakistan are fully supportive of the decisions taken by him in the post-9/11 scenario.
On al Qaeda, he said, its operatives are on the run and Pakistan has captured some of the most wanted men of the organisation from its cities and has destroyed its communication network and sanctuaries in South Waziristan area.
To a question, he said, only Pakistani forces carry out operations against terrorists on Pakistani soil with the help of human intelligence and modern equipment.
He informed the global audience that the vast majority of Pakistanis are moderate and it is only a fringe minority, which is involved in extremist activities. Pakistan, he said, has banned extremist organisations as part of its drive to contain the malaise.
He said Pakistan would not allow any foreign organisation to interview scientist Dr Abdul Qadeer Khan, as the country is fully capable of probing the case.
He told the gathering of editors from around the world that Pakistan has been following a policy of defensive deterrence and maintains minimum deterrence level on the basis of security requirements.
The president said sustainable democracy has been introduced in the country and people have been empowered at the grassroots level through local government system and women and minorities have also been empowered like never before.
"We have liberated the media, we now have a number of channels with total freedom of speech, which is the essence of democracy," he said.
He said, the Senate, National Assembly and the provincial assemblies are working at various tiers of the government and the next general elections would take place in 2007, upon completion of the five-year term of assembles.
President Musharraf condemned the attack on a foreign food restaurant in Karachi.
Commenting on the role of the international media vis-à-vis addressing the issue of extremism, he said that the global channels bring to the fore the views of either people holding extreme religious views or ultra modernists.
He regretted the absence of voices of moderation on the mainstream international media and observed that they remain out of the loophole.
Musharraf said that a top al Qaeda operative arrested in Pakistan was being handed over to the United States.
"We are obviously going to deport him. We have extracted all the information and intelligence from him," he said, referring to al Qaeda's alleged number three Abu Faraj al-Libbi, who was arrested earlier this month.
"I presume that he may have been deported already to the United States," Musharraf said, adding that till three days ago Libbi was in Pakistan. Asked why Pakistan was deporting al-Libbi to the United States while he was involved on two assassination attempts on him, Musharraf said, there were "bigger issues" involved.
When told Afghan President Hamid Karzai had said Osama was hiding in Pakistan, Musharraf described it 'conjunctures'. "I really do not know how people can give such conjunctures, I could say he is in Afghanistan. But I never say that," he said.