Musharraf upbeat on India
 |  Musharraf says there is "light at the end of the tunnel" over Kashmir. |
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 Pakistan's prime minister visits India in an effort to cement diplomatic gains between the two nations.
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WASHINGTON (CNN) -- Pakistan President General Pervez Musharraf has told CNN he is very optimistic about relations with neighbor and old-time rival India.
In an interview with CNN's Wolf Blitzer on Sunday, Musharraf said both nations needed to move ahead on finding a solution to the disputed territory of Kashmir, a region that has sparked two wars between the South Asian nuclear rivals and almost sent them to war a third time.
He said there was a "lot of optimism" in the statement on Kashmir that he and Indian Prime Minister Manmohan Singh issued after they met in New York in September.
"We are supposed to be discussing all options for the resolution of the Kashmiri dispute in a purposeful manner. So therefore, I keep saying there's a light at the end of the tunnel," Musharraf told Blitzer.
Late last month, Pakistan's new prime minister, Shaukat Aziz, visited India in a bid to build on growing diplomatic maneuvers between the neighbors.
In his first visit to New Delhi since taking office in August, Aziz met Dr Singh on November 24.
Although Aziz's visit to India was in his capacity as the chairman of a South Asian regional body, India and Pakistan discussed issues of mutual concern, including Kashmir.
While no solid proposals emerged from Aziz's first visit to India, progress was made on improving transport links and communications between Indians and Pakistanis living in Kashmir.
In particular, the prospect of opening up a land route between the Pakistan-controlled city of Muzaffarabad and Indian-controlled Srinagar was discussed.
In early November, Dr Singh had made his first visit to Kashmir since taking office.
In recent months, both nations have been working to resolve their rivalry, with India announcing a pullout of thousands of its troops from Kashmir.
On the other side, Pakistan has proposed new ways of looking at the territorial problem, including putting some areas of Kashmir under joint Indian and Pakistani control, or putting it under U.N. administration.
The nations have also enforced a total cease-fire between forces lined up on each side of the border, and have resumed air, rail and bus links.
