Pakistan President Pervez Musharraf telephoned new Indian Prime Minister Manmohan Singh on Sunday and both leaders vowed to continue the peace dialogue, report agencies quoting Pakistan foreign office spokesman Masood Khan.

The evening call  was the first top-level contact between the two countries  since Singh was sworn in as the Indian prime minister on Saturday.

"Both the leaders expressed the desire for continuation of dialogue to resolve all issues, including Jammu and Kashmir,'' and "reiterated their strong desire'  to develop commercial and economic ties," Khan said."They expressed their strong desire for peace and harmony in the region as well as development of economic and commercial ties between Pakistan and India." 

President Musharraf congratulated Prime Minister Singh and also conveyed his greetings to Congress leader Sonia Gandhi. The telephone conversation came soon New Delhi  announced the postponement of  talks on nuclear confidence building measures scheduled for May 25-26.