The Pakistani prime minister, Nawaz Sharif, has called for an end to the nuclear arms race in South Asia and has urged his Indian counterpart, Mr Atal Behari Vajpayee, to agree to bilateral talks.

Mr Sharif said Pakistan had long favoured a meaningful dialogue with India, and that was still the case despite the series of nuclear tests conducted by both sides.

But he called on the international community to help resolve the Kashmir issue.

India favours bilateral talks on Kashmir, but has rejected any third-party mediation.

Mr Sharif, speaking in parliament said details of the austerity package announced after Pakistan's nuclear tests will be announced in a few days' time.