Pakistan Prime Minister Shaukat Aziz has lauded Prime Minister Manmohan Singh [Images] for responding positively to the proposals made by President Pervez Musharraf [Images] to resolve the Kashmir issue.

"It will pave the way to find a solution acceptable to Pakistan, India and Kashmiris," he told reporters.

Dr Singh had, last Saturday, welcomed President Musharraf's four-point formula without actually making any direct reference to it. "We welcome efforts by whosoever talks about normalising relations between India and Pakistan," he had said.

President Musharraf's formula, which he has made at least twice to Indian journalists since last August, includes demilitarisation, self-governance and joint management in Jammu and Kashmir.

"Pakistan always talked about the solution for Kashmir in accordance with the aspirations of the Kashmiris and supported their just cause," Aziz said, while emphasising the need to resolve the issue through negotiations.

Meanwhile, Foreign Minister Khurshid Kasuri, who met a 10-member European Union parliamentary delegation on Monday, also believed that the ongoing dialogue provided the best opportunity to both the countries to resolve all outstanding issues, including Kashmir.