Pakistan says it's not preparing for war

"We are not preparing for a fourth war against India. We do not want it," Information Minister Sheikh Rashid Ahmed said in Islamabad.

Vajpayee told a gathering in Madhya Pradesh on Tuesday that "Pakistan has lost three times in wars. It is preparing to lose a fourth time."

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Ahmed further said that Pakistan did not have hostile designs against any country. "We want peace, but if war is imposed on us, then we know how to defend ourselves," he said.

Meanwhile Pakistan's President Pervez Mussharraf welcomed statement by Indian Deputy PM L K Advani that compromises have to be made by both India and Pakistan to resolve the Kashmir issue, President Pervez Musharraf has said if New Delhi takes one step, Islamabad is willing to take two to normalise relations.

In an interview to BBC Asia Today programme telecast on Wednesday Musharraf, who is currently in London, said he was willing to meet India more than half way.

Musharraf said he was "very glad he (Advani) said that he is prepared to make compromises. If India takes one step we are ready to two steps towards peace".

Hinting that there was a possibility that India and Pakistan could hold talks at a high level during this year, Musharraf said, "I think there will be talks. Pakistan leadership certainly wants it. But it depends on other side, whether they want to extend the other hand also."

He said Pakistan was doing everything possible to prevent armed militants from crossing into Kashmir but that he could not guarantee a total end to infiltration. "There is no infiltration, absolutely none, no official patronage."

He said efforts to stop cross border terrorism in Kashmir could not be sustained indefinitely. "You cannot keep a military on high alert for a long period and you would not like people to turn their guns against you and undermine your own government because you are selling out, because there is no reciprocation coming from the other side."

Replying to a question about why talks have been delayed despite Vajpayee's "bold" offer of resumption of dialogue, Musharraf claimed that Pakistan has offered seven confidence building measures (CBMs) instead of India's two.

Pakistan has taken seven steps to promote relations, including moving to restablish road and rail links and appoint a new High Commissioner to India, he said, adding India had only taken two steps.