Urging India to make a sacrifice to settle the Kashmir issue, Pakistan Prime Minister Mir Zafarullah Khan Jamali on Monday told a visiting Indian delegation of parliamentarians and journalists that his country wanted peace in the region.

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"Kashmir is the core issue and it can't be sidelined," said the Pakistani premier, who hosted a lunch for the Indian delegates attending a peace conference of parliamentarians and journalists from both the countries.

Stressing that the two countries must resolve disputes through dialogue, he said 'our desire is that Pakistan and India must live in peace and respect each other', quoted the state-run Pakistan Television.

The rulers should focus on the resolution of Kashmir dispute, so that the people could live in peace, Jamali said.

He said that Pakistan is ready for a composite dialogue with India to discuss all issues, including Kashmir.

Sources close to the Indian delegation said the prime minister renewed Pakistan's quest for dialogue with India and recalled his telephonic talk with Prime Minister Atal Bihari Vajpayee.

He welcomed the Indian delegation for visiting Pakistan and hoped that interaction between the people of the two countries would help improve bilateral ties.

On the second day of deliberation at the conference, the two sides focussed on building cultural ties.

Margaret Alva, Congress Member of Parliament, said people-to-people contacts should be increased.

The Indian delegation is scheduled to meet President Pervez Musharraf over a cup of tea on Tuesday.