ISLAMABAD  - Pakistan on Monday said it believes in a negotiated settlement of all outstanding issues with India including Kashmir.

This has been stated by Foreign Office spokesman Aizaz Ahmed Chaudhry in a media interaction.

He said Adviser on Foreign Affairs Sartaj Aziz is in New Delhi to attend Asia-Europe Foreign Ministers meeting.

The spokesman said Sartaj Aziz will also raise key issues of resumption of composite dialogue and de-escalation of tension on the Line of Control.

He said peace and stability is prerequisite for economic progress of the region.

The spokesman said Pakistan also wants implementation of the proposal of the Prime Ministers of the two countries for a meeting between the Director Generals Military Operations.

Meanwhile, India is prepared to give historic rival Pakistan "the benefit of the doubt" as the two countries strive for peace, Foreign Minister Salman Khurshid has said.

"We talk to Pakistan periodically and in terms of personal gestures we receive great warmth," he said.  "But the on-the-ground reality and the results of our meetings are very disappointing."

However, with Pakistani Prime Minister Nawaz Sharif last month vowing to go the "extra mile" to make peace with India, Salman Khurshid said Delhi would take him at his word. "Pakistan has a lot of very, very difficult issues to deal with at home," he stated.

"Our view is that we should give them time, not at our cost, of course, but that we should give them the benefit of the doubt. 

"When Nawaz Sharif says he wants peace and good relations with India, we take him at his word."  But with recent shootings at the border among the heaviest since a ceasefire agreement in 2003, Khurshid pointed out that Pakistan has not yet followed through on its promise of top-level military meetings to sort out better arrangements in Kashmir.

"If they can address the dismantling of the infrastructure of terrorism, that would be a good start," he told the newspaper.