ISLAMABAD, June 7 (Xinhuanet) -- Pakistani Prime Minister Zafarullah Jamali has rejected New Delhi's allegations that Pakistan was encouraging terrorism in India, English-language paper The News reported Monday.

    While talking to reporters Sunday in Rawalpindi, twin city of Islamabad, Jamali said the allegations made by Indian External Affairs Minister Natwar Singh that Pakistan encourages any sort ofterrorism in any part of India were "baseless and misleading."

    He said Pakistan would continue efforts to improve ties with India at every level and that it was very seriously looking forward for that coming talks with New Delhi scheduled for late this month.

    Earlier reports said Singh told the India Today weekly published last week that he would ask Pakistan when it plans to end its program of "terrorism" against India when he meets his Pakistani counterpart in August.

    "There can be no compromise on terrorism. Most terrorism in India comes from across the border, though Pakistan's policy of bleeding India has not worked," said Singh.

    In a telephone conversation Sunday between Pakistani Foreign Minister Khurshid Kasuri and his Indian counterpart Singh, the twosides agreed that war is no option and that both countries should look at ways and means for peaceful settlement of all their disputes including Kashmir.

    Singh also clarified that his statement about Pakistan and terrorism was misquoted by media. Enditem