LONDON, Oct 30: Prime Minister Nawaz Sharif said here on Wednesday that Pakistan wanted peace in Afghanistan and was ready to offer all possible support in this regard.

Talking to British Foreign Secretary William Hague, who paid a courtesy call on him, he stressed the need for introducing an effective border management system between Pakistan and Afghanistan to address the issue of cross-border infiltration.

The prime minister praised the continuing British government`s support for resolving outstanding issues between Pakistan and India.

He said more than six decades of mistrust between the neighbouring countries had resulted in enhanced defence spending at the expense of their social sectors.

`This tit-for-tat policy must end now so that the condition of the people of both countries can be ameliorated.

The prime minister said Pakistan wanted to resolve all issues with India through dialogue.

However, the resolution of the Kashmir issue was possible only when all the three stakeholders Pakistan, India and Kashmiris were onboard, he said.

Mr Hague welcomed Pakistan`s approach of resolving all outstanding issues with India and Afghanistan through dialogue and said he was impressed by the country`s efforts to create an enabling environment fornegotiations.

TERRORISM: British Home Secretary Theresa May also called on the prime minister and discussed matters relating to cooperation on security and fight against terrorism. Praising the UK`s support for Pakistan in its fight against terrorism, the prime minister termed Ms May a `friend of Pakistan`.

He informed her about a recent legislation and other steps taken by the government to eliminate terrorism.

He said the Protection of Pakistan Ordinance had been promulgated to fight extremism.

Briefing her on important provisions of the law, he said it defined `enemy aliens` and envisaged that terrorismwould be treated as waging a war against the state.

Mr Sharif said the government was determined to root out extremism and terrorism.

Pakistan does not want its soil or that of Afghanistan to be used by `enemies` against the other.

Secretary May praised the law and various steps taken by the government to eradicate terrorism. She also lauded Pakistan`s role in the `global war on terror` and acknowledged the huge sacrifices rendered by the country in terms of human lives and economic losses.

She assured the prime minister of complete support in the fight against extremismand terrorism.

REFORMS: While discussing the government`s development and economic reforms agenda with Justine Greening, the Secretary of the British Department for International Development, the prime minister said his government had decided to increase the education budget from two to four per cent of GDP during its tenure.

Briefing Ms Greening on the country`s economic reforms agenda, he said there were no quick fixes to improving economy and sustained efforts were needed in this regard.

`It may take years but we are on the right track to set the economy right.

He also said that the government was not able to keep feeding the big state-owned organisations forever.

Therefore, the problems of corruption, mismanagement and overstaffing will be addressed on a priority basis.

The British secretary offered all possible help to educate children in Pakistan.

But she emphasised the need for better financial controls and fiscal discipline.

The prime minister said a `Performance Delivery Unit` had been set up to monitor all areas of economy and infrastructure development, aiming at transparency and speedy completion of projects.

The British secretary said that Pakistan`s economic reforms agenda was a right step in the right direction.-APP