Pakistan President Pervez Musharraf [Images] has said that the Indo-Pak anti-terror mechanism was a test for both countries; he was responding to Prime Minister Manmohan Singh's [Images] statement that it was a test for Islamabad.

"The test is on both sides," Musharraf told reporters on Sunday, answering a question about Dr Singh's statement.

Brushing aside criticism against the formation of a joint mechanism with Pakistan to fight terrorism, Dr Singh had said in a press conference in Nainital that it was aimed at testing Islamabad on implementing its promise to end the scourge directed against India.

"The criticism against setting up of the joint mechanism is not right. There is no change in our approach on terrorism," Dr Singh had said.

Musharraf who was talking to reporters after arriving from Dallas said, "An institutional arrangement is required for both sides -- this institutional arrangement will give comfort to both sides -- we also have some observations about interference in our country."

The Pakistani President said he has been able to remove some misconceptions about the peace deal in North Waziristan, saying that every one was now 'on board'.

"We have to understand the new environment and then finalise a strategy and take it to the implementation stage," he said.

Observing that the environment was not properly understood in Afghanistan, Musharraf said, "We need brains rather than brawn. If there is non-understanding of the environment, no strategy can be successful."

Musharraf had a spat with Afghan President Hamid Karzai in the United Nations where each accused the other's country for not taking action against terrorists.

What Pakistan had done in North Waziristan -- the accord with tribal leaders -- was the correct path and, if successful, could be emulated elsewhere and even in Afghanistan, the Pakistan President said.

He declined to comment on reports that al-Qaeda leader Osama bin Laden might have died - "I do not know whether he is alive or dead and, therefore, I won't comment."