ISLAMABAD, Feb 16: Australia on Monday witnessed the agreement reached between the NWFP government and Tehrik Nifaz-i-Shariat Mohammadi (TNSM) and described the suspension of military operation in parts of the province as a positive development. Australian Foreign Minister Stephen Smith, who is here on a three-day visit, said military action was not the only option to combat terrorism.

The Australian minister travelled to Peshawar and tribal areas on Monday and addressed a joint press conference with Foreign Minister Shah Mehmood Qureshi. “What we have is a positive development,” he said.

“We certainly believe that combating extremism and terrorism is not just military enforcement, it also needs civil capacity building, civilian reconstruction and dialogue.”

However, the Australian foreign minister cautioned against an unfavourable outcome, in an apparent reference to the fate of agreements signed by the previous government with extremists.

He proposed a four-fold increase in the number of Pakistani troops being trained in Australia and said that military dialogue between the services chiefs of the two countries should be a regular feature.

Acknowledging that the tribal areas’ terrain was difficult and the porous Pak-Afghan border was a major factor hindering the counter-insurgency efforts.

He said he hoped Pakistan would be able to overcome the challenge posed by extremists with international support.

The minister announced an increase in development assistance in areas requiring capacity-building, like health, civil society, democracy and tolerance. He, however, did not specify the amount.

On the issue of strained Pak-India relations, Mr Smith said Australia had a significant interest in South Asia, adding that it was also interested in resolving the issue of the Mumbai attacks.

He welcomed Pakistan’s response to the Indian dossier and called upon India to respond favourably. He also called for resumption of the stalled composite dialogue between the two neighbours.

Mr Smith said that perpetrators of the Mumbai attacks should be brought to justice and the country should launch a crackdown on groups involved, particularly Lashkar-e-Taiba.