Pakistan President Pervez Musharraf [Images] has termed as 'intriguing', India's comments on the situation in Balochistan province and said the government knew who is funding the armed rebellion in the region.

Without naming India, Musharraf told the media at the Council of Pakistan Newspaper Editors in Lahore [Images] on Thursday that the statement by a 'neighbouring country' about the situation in Balochistan was 'intriguing'. "We know who is financing and supplying weapons," he said.

New Delhi had, earlier this week, noted with 'concern' the spiralling violence in Balochistan and heavy military action there and asked Pakistan to 'exercise restraint' and address the grievances of the people of the region through peaceful discussions.

Terming the comments as 'unwarranted', Pakistan accused India of interfering in its internal affairs. On the Indo-Pak peace process, Musharraf said there was no doubt that Pakistan-India relations were at their all-time best.

"However, it is also true that there is not enough progress on Kashmir," he said. He said the confidence-building measures had been moving ahead and 'Pakistan is trying to speed up the process of dispute resolution as well'.

• Is Balochistan burning?

Musharraf dwelt at length on the deteriorating law and order situation in Balochistan, where the Baloch nationalist and tribal chieftains agitated against Pakistan army's plan to construct cantonments and mega development projects, which led to large-scale migration from other provinces to the sparsely populated province

Defending the military action in Balochistan, he said para-military operations in the province were a retaliation to the Balochs' attacks on the IG Frontier Constabulary - "The FC is acting in self-defence. They have a right to retaliate."

Musharraf said he favoured a negotiated political solution to the issue but would not allow the rebels to take the country hostage.

The federal government's attempts at developing the province were being 'sabotaged by miscreants even though the government extended a a huge financial package of Rs 130 billion for the province. The detractors were trying to hamper exploration of resources, construction of roads and other infrastructure and all other developmental projects, including the Chinese funded Gwadar Port', he said.

"Satellite images show that there is gas and oil in Balochistan and these troublemakers are trying to hinder Balochistan's progress and Pakistan's progress," Musharraf said.

• Musharraf's hour of reckoning

The source of subversive acts, he said, was the same irrespective of the fact those had been carried out in Quetta, Chaman, Gwadar, Kohlu or any other part of the province and added 'we will get these sources and uproot them forever'.

Musharraf said he would support the recommendations of the Parliamentary Committee's report to address the problems in Balochistan.