Pakistan President Pervez Musharraf [Images] on Wednesday said that talks with India on resolving the Kashmir issue were 'now on track.'

"In the last few months we got sidetracked on Kashmir. But it is now on track," he said at the World Economic Forum in Davos.

Musharraf said he was confident that bilateral talks would gain momentum after the February 18 general elections in Pakistan.

On the issue of terrorism, Musharraf  said Pakistan government was following a multi-pronged strategy to fight the menace.

"We are fighting extremism in a holistic manner -- militarily with Al Qaeda [Images] and politically with its supporters in the country," he said.

"We have understood terrorism and extremism and are fighting with al Qaeda and Taliban," the Pakistan President said, adding it may take time to tame the terrorists in the country.

Musharraf spoke alongside Afghan President Hamid Karzai and the discussion was moderated by former US Secretary of State Henry Kissinger.

He tried to convince over 2,500 business and political leaders gathered here that his government should be assessed based on the country's economic performance and the well-being of Pakistanis.

Allaying fears about the country's nuclear weapons falling in the hands of terrorists, Musharraf said Pakistan's atomic assets were secure.