Terming Kashmir as a "key dispute," Pakistan on Tuesday said dispute resolution was important for a sustainable, expanded relationship between New Delhi and Islamabad.

"From the Pakistan perspective, Kashmir is a key dispute," Pakistan Prime Minister Shaukat Aziz told a press conference on the sidelines of the 14th SAARC Summit in Delhi.

"Dispute resolution was the cornerstone of a sustainable, expanded relationship between India and Pakistan," Aziz said.

"Pakistan and India are engaged in a multifaceted peace process. Talks are on at every level, some public and some not so public. However, the focus should be less on the process and more on the end result," he said. 

"Kashmir is a core issue. People may not like us to say this. But that is the reality," Aziz said.

The Pakistan premier, however, expressed satisfaction with the peace process between the two countries so far, saying, "There is more interaction, the level of comfort is higher, disputes talked about and people are travelling more frequently."

Aziz said business and trade relations between the two countries were also growing. 

Aziz said bilateral relations were much more cordial than they were a few years back.

India and Pakistan were committed to better ties and every meeting between them was part of the peace process, he said, and stressed that the trust deficit between the two countries should come down to zero.

"It will take time, but we have to make efforts," Aziz said, also noting that difference of opinion was not unhealthy.

"We have to bequeath to our next generation a safer South Asia and a stronger relationship between India and Pakistan so that both can benefit," he said.