A day after the European Parliament passed her report that criticised Islamabad for lack of progress on democracy and human rights in the Pakistan-occupied Kashmir, Emma Nicholson said it was of historic significance for the oppressed Kashmiris there.

"I am pleased by the overwhelming backing from the European Parliament for this report as well as the message of support from Kashmiris and others, including cricketer-turned-politician Imran Khan and former Prime Minister Benazir Bhutto," Nicholson told media persons at the House of Commons on Friday.

The report 'Kashmir: Present and Future Prospects' was adopted by European Parliament in Strasbourg on Thursday by 522 votes in favour, 9 against with 19 abstaining. It also ruled out a plebiscite in Kashmir.

Emphasizing the need for taking up more confidence building measures in the region in areas like tourism, environment, trade and academic exchange, Nicholson said, "The European Union has a strategic and growing interest in the region and although it has no specific mandate to intervene, it can engage constructively through solutions that have been effective in resolving conflicts in Europe's own turbulent past."

"The report rightly highlights the important peace process that India and Pakistan have now undertaken, which is essential for Kashmiris to have hope for a better future," she said.

"One of the keys to this is the opening up of opportunities for trade, which makes the commitment given by all South Asian states within SAARC to pursue the goal of a South Asia Free Trade Area so vital," she added.

Nicholson, a Liberal democrat lawmaker, said the report was directed primarily at the governments on either side of the Line of Control (India and Pakistan) to pursue the bilateral talks, which were temporarily suspended last year following the Mumbai blasts and to explore options for increased self-governance, free movement and demilitarization.

However, the report suggested that the preconditions for holding the long-promised plebiscite on final status do not yet exist. Instead it called on the international community and parties concerned to boost confidence-building measures in the region 'in areas like tourism, environmental action, trade and academic exchange.'

She said the report is now an official document and policy of European Parliament, and the Pakistan government would have to act accordingly to make sure that whatever has been suggested in the report, should be implemented in true spirit.

During the deliberations, she said, Members of European Parliament welcomed and encouraged bilateral talks between India and Pakistan to find a solution to the Kashmir conflict while criticizing Pakistan for lack of progress on democracy and human rights.