Pakistan President Pervez Musharraf has stressed that resolution of disputes between Islamabad and New Delhi will enhance mutually beneficial economic and trade cooperation.

"We (Pakistan and India) need to move forward on all disputes as this is imperative for economic growth and cooperation between the two countries," Musharraf told a visiting delegation of the Federation of Indian Chambers of Commerce and Industry (FICCI) here Wednesday.

State-run Radio Pakistan quoted the president as saying: "We have to move forward on the political front effectively for dispute resolution and also simultaneously look for developing trade and economic ties to the benefit of both countries."

He said past accords between the two countries had failed as "they did not address the lingering disputes and brushed them under the carpet. We should not do it again."

Referring to Pakistan-India peace process, the president said he found Prime Minister Manmohan Singh to be "sincere in his intentions."

Musharraf emphasised the need to enhance regional trade but said amity between the two countries was essential for translating it into substantive cooperation. He hoped that increased interaction between the business leaders of the two countries would help create a better understanding on different issues.

A 100-member strong Indian business delegation is on a five-day visit to Pakistan to discuss trade opportunities with business leaders and government officials.

The delegation arrived in Karachi Monday to participate in a business conference organised by the India-Pakistan Chambers of Commerce and Industry. The team arrived here Wednesday to meet Musharraf. They are also expected to meet Prime Minister Shaukat Aziz.

FICCI President Onkar S. Kanwar said Musharraf was hopeful about settlement of all disputes between India and Pakistan.

"The president is of the view that the hurdles in resolving disputes can be overcome through political will and sincerity," Kanwar told.

The more than one-hour-long meeting with Musharraf was very useful, he said adding that the president had promised to look into difficulties being faced by traders from both countries.