ISLAMABAD, June 6: Prime Minister Mir Zafarullah Khan Jamali said on Sunday that President General Pervez Musharraf was involved in consultations on matters related to Sindh and Karachi and on measures needed to be taken to restore peace in the city.

He was talking to newsmen after a meeting with PML leader Syed Kabir Ali Wasti at the latter's residence on Sunday afternoon. He had called on Mr Wasti to end acrimony triggered by an open letter sent by the latter to President Musharraf, criticising the prime minister.

When asked about the possibility of changes in the political set-up in Sindh, Mr Jamali said party president Chaudhry Shujaat Hussain was in the process of consultations with him and other party leaders and a decision would be taken after reaching a consensus.

He said: "Karachi is an economic nerve centre of Pakistan which cannot be allowed to remain closed even for a single day, since a single day's economic losses of this city runs into billions of rupees.

He refuted reports of differences with the president and expressed complete ignorance about any plan for bringing about a change at the centre. "Like you, I also read such reports in the media," he said.

The prime minister welcomed Indian Foreign Minister Natwar Singh's latest statement, termed it encouraging and said Pakistan would continue to pursue the process with the Indian government, no matter which party was in power in New Delhi.

Asked whether the process of talks could be slowed down or halted after the Congress party had come to power in New Delhi, Mr Jamali said: "Talks between the two countries were always held on government-to-government basis and these must not suffer due to the change of the party in power."

He expressed skepticism about a part of the Indian foreign minister's statement in which the latter had said he would question his counterpart Khurshid Kasuri when they would meet, when would Pakistan stop "cross-border" terrorism.

Mr Jamali said Pakistan was not involved in any kind of terrorism and as such Mr Singh's remarks had no basis. The premier said that by mentioning the Shimla accord, Lahore Declaration and the Agra summit, Mr Singh had negated his own statement.

Responding to a question about the NFC award, Mr Jamali said: "After failure in forging a consensus among the provinces it has been decided that the resource transfer to provinces will continue to be made on the basis of previous NFC formula but with substantial enhancement in their share."

When asked about the quantum of the enhancement Mr Jamali said: "I do not have the exact figures right now." When asked if the government intended to build a big dam in the country in the near future, the premier said: "There was a dire need for big water reservoirs to meet the country's future water requirements, otherwise a huge chunk of water would continue to fall in the sea and keep the country backward."

Mr Jamali refused to accept PML-N acting president Chaudhry Nisar Ali Khan's assertion that he was a 'weak' prime minister. He said: "Thanks for the sentiments of Mr Chaudhry but no-one knows as to who was strong and who was weak."

When asked why was the finance minister continuously presenting a rosy picture of the economy about the GDP growth rate, while the reality was different, the prime minister said: "We have not yet finalised the budget proposals, and when these will be finalised they will come to the cabinet for approval."

He, however, added: "I want to assure the nation that there will be no fraud (indicating fudging of the economic growth figures) and no false attempt would be made to mislead the nation."

About Senator Mushahid Hussain being made PMLs' secretary general, Mr Jamali said: "I am in full agreement with the decision since it was a party decision." About his differences with Mr Wasti, he said: "I have nothing against him because being a Baloch I cannot afford enmity with a Syed."

Speaking on the occasion, Mr Wasti said: "I am overwhelmed by the prime minister's gesture of visiting my residence and all the differences between us are now over."