Favouring a policy of 'soft borders' for Kashmir, Pakistan President Asif Ali Zardari has said greater contact between the people on the two side will pave the way for a final settlement of the issue.

Obama may re-hyphenate India and Pakistan

Citing the recent opening of the cross Line of Control [Images] trade 'as just one step to bring Kashmiris together', Zardari said this was a crucial move for ushering in peace and prosperity in the whole region.

"The opening of cross LoC trade recently is just one step to bring the Kashmiris together. Who knows�this step might turn out to be a lead forward for ushering in peace and prosperity in the whole region", he said in a message read at a national conference in memory of eminent intellectual Khan Zaman Mirza in Mirpur on Friday night.

India, Pak open trade across LoC

Zardari said his government is moving steadily to find an honourable solution to the Kashmir issue 'in accordance with the wishes of the Kashmiri people,' the APP reported.

"We believe that the policy of soft borders - so that the people of the two parts of Kashmir can meet, travel and do business - can be pursued without compromising on the issue of Kashmir," he said.

Why Pakistan is reactivating the Kashmir front