Musharraf disappointed over Indian allegation

Musharraf, in an interview with Indian magazine Frontline conducted on August 1, said the accusations had been made immediately after the blasts, with "hardly any substantiated proof," as if he had ordered the attacks, which killed 186 people.

"This is very, very annoying. It is disappointing," he said. "Such allegations lead to vitiating the atmosphere. It should not be done."

Indian officials say Pakistan-based Islamist militant group Lashkar-e-Taiba is a prime suspect for the blasts in India's financial capital. Some officials have also pointed a finger at Pakistan's powerful military intelligence.

But Musharraf said the lack of trust between the two countries was "pitiable," adding that they needed to learn to work together to combat extremism.

"There are freelance terrorists who are roaming around and doing this," he said.

The peace process between the old rivals was launched nearly three years ago but has recently run into trouble.

India is angry that Pakistan has not done enough to stop Islamic militants using its soil to support a separatist revolt in Indian Kashmir.

Pakistan feels that India is dragging its feet in the quest for a solution to their central dispute over the Himalayan region of Kashmir.

Musharraf is expected to meet Indian Prime Minister Manmohan Singh on the sidelines of a summit of the Non-Aligned Movement in Cuba next month.

While Musharraf remains hopeful for a lasting solution to the Kashmir dispute, some Pakistani diplomats are not optimistic.