ISLAMABAD, Feb 2: President General Pervez Musharraf on Friday accepted "some failures" at the tactical level in dealing with Taliban militants in the border region with Afghanistan, but said the overall strategy of using a combination of military offensive and peace deals was working fine. He declared that the best way to stop the cross-border movement was the fencing of the Durand Line.

Announcing the start of the first phase of border fencing in a troubled mountainous part of over 35 kilometres in the Federally Administered

Tribal Areas (Fata), General Musharraf said that under the circumstances this was the best available option.

The president, who was addressing a press conference, mostly discussed the situation in Afghanistan and its impact on Pakistan. He said that in the second phase a much bigger border area of 250 kilometres would be fenced on the Balochistan side.

"We are doing whatever is possible to stop the cross-border movement of the Taliban, or eliminate their supporters living on the Pakistani side," he said, adding: "And those who have continued to cast aspersions on our actions and intentions should either come up with alternative solutions, or simply let us handle the situation the way we think is right."

In his opening remarks he explained Pakistan's perspective on the situation in Afghanistan and forcefully defended recent actions taken against pro-Taliban militants in Waziristan and other parts of the border region. He did not say why did he feel the need at this particular stage to present Pakistan's case in such detail, but his forceful, and somewhat aggressive, tone suggested that he was quite annoyed with a series of accusations levelled against Pakistan and its intelligence service, the ISI, of failing to prevent the Taliban resurgence in Afghanistan.

Some observers were of the view that recent remarks by US National Intelligence Director Chief John Negroponte about Al Qaeda finding a solid hideout in Pakistan for its operation and a follow-up action by Kabul might have prompted Islamabad to go on the offensive.

President Musharraf did not name any critics of Pakistan's policy, and appeared to have made conscious effort not to say anything against Afghan President Hamid Karzai for casting aspersions on Pakistan. But he described as "preposterous" the allegation levelled by some western critics that the government or the ISI might have been protecting or assisting the Taliban.

"Such accusations do not even deserve a response," Gen Musharraf said. "It amounts to directly accusing me and my ISI chief."

According to him, without efforts of the ISI it would not have been possible to thwart some of the terror attacks, or arrest most of key Al Qaeda or Taliban figures. "And the CIA is well aware of the ISI's contribution."

President Musharraf went on to explain and justify some of the steps the government has taken to control the situation on the Pakistani side of the border, including a peace deal with tribal militants of North Waziristan, creation of levies, military operation against top militant leaders like Baitullah Mehsud and fencing parts of the Durand Line from where there had been a constant flow of Taliban fighters in and out of Afghanistan.

He criticised the US-led Nato forces in Afghanistan for failing to check Al Qaeda and Taliban activities.

"This is my solution, to erect fencing and it should not concern anybody." However, he said, Pakistan had decided, for the time being, "not" to lay mines owing to international sensitivities.

The president agreed with a reporter that the Afghan problem could be resolved if Taliban, who constituted 60 per cent of the population, were invited to join the government. “There is a need for a paradigm shift to restore peace in Afghanistan.”He said misunderstandings and misperceptions about Pakistan should be removed to win the war against terrorism and extremism. "The gap between perception and reality is widening which must be cleared," he said, adding that nobody in the US government had accused Pakistan or him of supporting the Taliban or other extremist elements.

He said Afghan refugees in the NWFP and Balochistan were providing assistance to the Taliban and that they must go back to their country. “Afghan refugee camps have become safe haven for Taliban.”

He said Mullah Omar, Gulbadin Hikmatyar and Mulla Dadallah were in Afghanistan and they were operating from there against the Karzai government.

"I am 500 per cent sure that Mullah Omar is in Afghanistan," he said. Mullah Omar, he said, was the overall in-charge of the Taliban, who was needed to be hunted down.

He said there was problem on the Pakistani side as well, and the Taliban were getting support from people in tribal areas. However, he said, it was absolutely wrong to blame Pakistan for whatever was going on inside Afghanistan.

Gen Musharraf said there were militant leaders like Baitullah Mehsud on the Pakistan side who provided support and inspiration to the Taliban, but they had to be jointly dealt with by both the sides.

He said there was another wrong perception that Pakistan alone had to stop the cross-border activity. "No Sir, we are not responsible, as it has to be a joint effort of Pakistani, Afghan and Isaf forces."

He said Pakistan had set up about 1,000 checkposts on its borders, while the Afghan government had established less than 100 points which needed to be increased to check the illegal crossing.

He said that there was another misperception that Pakistan was a source of instability in Afghanistan, "but I say Pakistan is a victim of instability".

Gen Musharraf quoted a UN report of September 2006 that said instability and insurgency were being created in Afghanistan but Taliban leaders were relying on support outside their country. The report also said that financing was being made available to Taliban through drug trafficking.

He said Pakistan would certainly contribute to restrict Taliban and other militants but warned that the battle was in Afghanistan and not here (Pakistan).