Expressing desire to have better relations with India, President Pervez Musharraf has said Pakistan will "not budge a single inch" from its position on the Kashmir issue.

"We wish to improve the bilateral ties with India as Pakistan wants durable peace in South Asia," he said at a meeting on Monday attended by Prime Zafarullah Khan Jamali, Foreign Minister Khursheed Mohammed Kasuri and top military officials.

He, however, said there would be no compromises on Pakistan's principled stand on the Kashmir issue.

Pakistan had time and again stated that it wanted to develop ties with India that were based on equality. "But it would not budge a single inch from its position on Kashmir and other disputes under any coercion or blackmail," he was quoted as saying.

Foreign Secretary Riaz Kokhar briefed the meeting about the country's policy perspectives focusing on Pakistan-United States relations, which in the recent weeks came under strain, especially after Washington directed all Pakistanis visiting and residing America to register under Immigration and Naturalisation Services.

The US decision has irked Pakistan as thousands of Pakistanis, especially the illegal immigrants will now have to line up to register themselves.

The government had made repeated appeals to US officials to remove the country from the list, in view of its co-operation in the crackdown against Taliban and Al-Qaeda militants. But the Bush Administration has not obliged so far.