Prime Minister designate Manmohan Singh on Thursday said his government wants to continue the peace process with Pakistan.

"We seek the most friendly relations with our neighbours, more so with Pakistan than with any other. We must find the ways and means to resolve all outstanding problems that have been a source of friction and the unfortunate history of our relations with Pakistan.

Also Read We will create atmosphere of peace: Manmohan Singh

"It is our sincere hope that friction between the two countries should become a thing of the past," he said adding that the two countries should look to the future with hope.

"That is not impossible. Who could have imagined that some 15 years ago the Berlin wall would melt, then the world saw what was impossible in international politics became a norm," Singh said.

"It will be our effort, without sacrificing our national security imperative, to create an environment to move forward to improve our relations with Pakistan."

On the issue of Jammu and Kashmir, his government would favour dialogue with all the interested parties to explore all possible opportunities to bring 'peace and progress' to the vital state.

Singh's comments assume importance in the wake of peace initiatives taken by outgoing Prime Minister Atal Bihari Vajpayee for improving ties with Pakistan, including the resumption of cricketing ties.

Indo-Pak Peace Talks: Complete Coverage