There are many proposals on the issue and the position needs to be crystallised, he told reporters on the sidelines of the United Nations General Assembly session in New York.
Musharraf said discussions in Havana on the margins of the NAM Summit with Prime Minister Manmohan Singh were "positive", adding both of them are in a "difficult" position because of extremists in both countries who are opposed to the peace process.
Asked what gives him the confidence that differences between India and Pakistan will be resolved, he said there are several factors, which make him optimistic. These include desire of the people of the two countries to normalize relations.
Besides, the international environment is conducive to resolving the issue and the leadership of the two countries is also committed to it, Musharraf said during the half-an-hour press conference. He also urged the media to play a positive role.
Asked about who was behind Mumbai blasts, he said he had no idea.
Pakistan had offered to conduct an investigation if information was given to it about the people involved but that was summarily dismissed.
"I do not know who were behind it," he added.
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