The European Union should adopt a "balanced" approach on the Kashmir issue and play an "active" role in dispute resolution between India and Pakistan, President Pervez Musharraf said on Wednesday.

In a meeting with Elmar Brok, chairman of the Committee on Foreign Relations, and Chairman of All Party Group on Kashmir James Elles of the European Parliament, Musharraf stressed progress on resolving Kashmir issue in the light of his proposals to promote peace in the region, an official statement said.

Apparently referring to a recent EU report on Kashmir, which said the demand to hold a plebiscite in Kashmir was out of step with realities, Musharraf hoped that "a balanced and forward looking report on Kashmir would be adopted by the (European) Parliament."

The report had been objected to by Islamabad.

He impressed upon the European Parliament to take a more active role in dispute resolution between Pakistan and India, it said.

On the situation in Afghanistan where the EU, US and the Karzai government accused Pakistan of backing Taliban, he said the international community should facilitate repatriation of over 3 million Afghan refugees to their homeland.

Musharraf said Pakistan attached importance to its relations with the European Union, which is its largest commercial and development cooperation partner.

He stressed the need for greater market access to Pakistan to create jobs, sustain economic development and fight poverty and extremism.