President Pervez Musharraf [Images] on Thursday dismissed reports about his resignation and his differences with the army, saying they were part of a "malicious campaign" to create unrest in Pakistan.

Musharraf said he was trying to create an atmosphere of reconciliation, but certain elements were spreading rumours about political issues that were affecting business and the investment climate.

Such an atmosphere could harm the country, he said.

Musharraf's comments came in the backdrop of speculations among political circles that he might opt to step down.

Asserting that he believed in reconciliation and not confrontation, Musharraf told a gathering at a dinner he hosted for former Punjab governor Khalid Maqbool that he fully supported Prime Minister Yousuf Raza Gilani in his endeavours for running the affairs of the country smoothly.

He said there were "elements and people" indulging in "rumour-mongering and spreading of unnecessary fabricated stories" about differences between him and Army Chief Gen Ashfaq Parvez Kayani.

The elements spreading the rumours wanted "to create a gulf and uncertainties in our environment," he said.

Political circles in Islamabad were on Thursday abuzz with reports about Musharraf's resignation following a meeting on Wednesday night between the president and the army chief.

Media reports suggested Musharraf and Kayani had discussed his resignation, but a presidential spokesman said Musharraf had no plans to quit and would complete his five-year term.

Musharraf said he and Kayani have "the best of associations" and there were no differences between them.

"How can there be a difference between myself and the chief and the army? So these are all fabricated stories... There is no problem whatsoever," he said.

"The problem lies in a malicious campaign to create a gulf and create uncertainties in our environment," he added.

Musharraf said the speculative reports about him had caused losses of billions of rupees as stocks plunged, causing panic in business circles.

This trend must not continue as it was damaging the country's economy and posed a threat to foreign investment, he said.

The dinner was attended by Prime Minister Gilani, Defence Minister Chaudhry Ahmed Mukhtar, the governors of the four provinces, the army chief and the air force chief.