ISLAMABAD (Agencies) - Prime Minister Yousuf Raza Gilani Saturday said the international diplomacy is helping defuse tension with India after the Mumbai tragedy. Gilani said prospects of a military confrontation between the two nuclear-armed neighbours have receded in the two weeks. "Normalisation takes time," Gilani said in an interview with a foreign news agency. "All our common friends and responsible statesmen are playing their important role in defusing the situation and I'm pretty sure that will work." The PM said Pakistan was taking action against groups and people put on a UN terrorist list. He said the chances of India resorting to air strikes in Pakistan were remote. He said action against groups should reassure New Delhi of Pakistan's desire to cooperate with India. "I think India is equally responsible and they won't (resort to airstrikes). There is no fear of anything like that," Gilani said. Gilani said the latest crackdown on some organisations would go beyond previous ineffective bans because UN resolutions gave the government a stronger legal position. "Now we have to act according to the United Nations resolutions," Gilani said. He said the freedom struggle in Indian-held Kashmir was indigenous, 'not state-sponsored' and has 'nothing to do with Pakistan'. Pressed on whether his government would act against groups involved in illegal activities, the PM replied: "Certainly if Pakistani soil is being used for any such activity the law will take its own course." He said India has yet to provide hard evidence of any Pakistani links to Mumbai attacks, but hoped this would be forthcoming when foreign ministers of both countries meet on Sunday (today) in Paris on the sidelines of a conference on Afghanistan. Gilani reiterated Pakistan's position that anyone caught in Pakistan would be tried there also, and suspects wouldn't be handed over to India. "We will go according to our own law," he said. "There is no such thing of handing over to India." He also plans to snap links between Islamic charities and any groups involved in illegal activities. He said charitable trusts and schools would be overhauled by the government, new boards of directors would be formed, and their work would be regularly monitored. Gilani said the greatest threat to Pakistan was terrorism. The PM said he was looking for multilateral lenders and friendly governments to help Pakistan meet the economic challenges. The International Monetary Fund last month extended a loan of $7.6 billion. Potential donors are expected to meet next month in a 'Friends of Pakistan' conference.