Pakistan on Saturday termed as "not unrealistic" Prime Minister Atal Bihari Vajpayee's suggestion of open borders and a common currency in South Asia, but said the objectives could be achieved only if problems like Kashmir were settled amicably.

It took a long time for the European Union to agree to a common currency, Pakistan Premier Mir Zafarullah Khan Jamali said reacting to the proposals put forth by Vajpayee at a conference in New Delhi on Friday.

"It is not so easy to do and will take time," Jamali told reporters on his return from a visit to France and Switzerland.

Pakistan Foreign Office spokesman Masood Khan told a private television channel Vajpayee's proposals were not unrealistic, but a difficult path to tread and demanded hard work, firm resolve and sincerity.

An atmosphere of trust in South Asia can only be created with a just resolution of disputes among the SAARC countries, he said.