Prime Minister Manmohan Singh [Images] has asked Pakistan to implement in 'letter and spirit' its commitment to end terrorism originating from that country, saying terror acts give a setback to peace and normalisation process.

''Improvement in our relations with Pakistan requires an atmosphere that is free from terrorism as it weakens and undermines efforts towards peace and normalisation,'' Dr Singh told the Daily Mirror.

He said that India seeks to establish peaceful and friendly and cooperative ties with Pakistan. ''We are committed to addressing all outstanding issues, including Jammu and Kashmir [Images], through bilateral discussions. In the last four years, we have been able to make substantial progress in our relations with Pakistan. Today there is a large constituency for peace in both countries and there is an opportunity to move ahead.''

                                          Pranab breaks the ice with Pakistan government

Speaking on the rise in terrorism in the region, he said South Asia has witnessed the most heinous acts of terrorism in living memory in the recent times, including the bombing at India's mission in Kabul, where precious lives were lost.

The scourge of terrorism must be removed from our midst and criminal and terrorists must never go unpunished, he said.

''There can be no economic growth or development without peace and security. We need to take all necessary measures to combat terrorism and trans-national crimes. Measures that facilitate better border management and prevent illegal trans border movements are in the interest of all sides,'' the Prime Minister said.

                                          Pakistan is behind Kabul blast, says India

On Indo-Sri Lankan ties, he said since the entry into force of Free Trade Agreement, the bilateral trade has grown rapidly.

Dr Singh said India attaches great importance to its relations with Bangladesh, which is multifaceted and dynamic and has expanded substantially in recent years.

He expressed confidence that the two countries would be able to address issues, relating to security, water resources and transit amicably.

                                Images: Security blanket over Colombo for SAARC summit

Referring to a proposal on South Asian integration, the Prime Minister said India has always maintained that it cannot prosper and progress without its neighbouring countries also prospering and progressing in equal measure. ''It is only through partnership and cooperation that we can harness our respective strengths,'' he added.

Asked whether some South Asian nations are apprehensive of India because of its vibrant economy, Dr Singh said, ''these are mindsets of the past, which we have to jettison. These have stood in the way of the region occupying its rightful place in the world.''

"India has always believed in peace and friendship with its neighbours. The South Asian Association for Regional Cooperation is an association that provides an opportunity to its members to walk the path of progress together, to overcome developmental challenges facing the region and to seize the opportunities that a rapidly globalising world offers," he added.

                                     'B'luru bombs more sophisticated than Ahmedabad'