"Kashmir is a critical issue and any step to resolve it will strengthen the peace process," Aziz told reporters after his hour-long meeting here with visiting Indian opposition leader L.K. Advani.

Advani, who arrived Monday evening on a weeklong trip, is visiting Pakistan on the invitation of Foreign Minister Khurshid Mehmood Kasuri.

"Our talks were held in a pleasant atmosphere and we discussed several bilateral issues including the peace process," Aziz said after the meeting. 

He said: "I have told Mr Advani that we are very clear in establishing friendly relations with India and want to resolve all disputes, including the Jammu and Kashmir problem."

To establish peace in the region it is important that "we move forward on all issues simultaneously", Aziz said.

He said his country wants to cooperate with India in all sectors including telecommunications, power, cricket, sports and other areas of bilateral interest.

Aziz said even the regular Pakistan-India cricket matches could bring the people of the two countries closer.

Replying to a question, the prime minister said the proposed visit of All Party Hurriyat Conference (APHC) leaders on June 2 will not create any adverse effect on the peace process.

"During their (APHC) visit we will talk on all issues," he said.

He said his country was optimistic about the visit of the Hurriyat leaders and "we believe it will help in the peace process".

He said that there are three parties to the Kashmir dispute and Kashmiris are one of them. "We believe that the Kashmir issue should be resolved according to the wishes of the Kashmiri people."

Aziz confirmed that Syed Ali Geelani, chief of his faction of APHC, was not visiting Pakistan on June 2. "We respect him a lot and believe that he would visit Pakistan at an appropriate time."