NEW YORK, Sept 21: President Pervez Musharraf urged the United States on Monday to overcome Muslim perceptions of a Western anti-Islamic bias by helping resolve global political disputes, especially in the Middle East.

Speaking at a dinner hosted by the US Chamber of Commerce here, President Musharraf said to redress the grievances of the Muslim ummah the Palestinian issue must be resolved because it would help promote a better understanding between the US and the Muslim world.

"Muslims today are feeling as if Islam as a religion is being targeted. This needs to be undone," he said. The president, who also took questions from the audience, said he worried about the continuity of the present set-up in the country and whatever decision he took about his uniform would strengthen the existing system.

"What worries me is the imperative need for continuity," he said. The president stressed the need for ensuring "the continuity of policies, and the continuity of action to enhance national cohesion and prosperity".

When asked if he would retain his uniform to ensure the continuity of his policies, the president said: "I have not yet decided, and I will take a decision in a few months time."

President Musharraf said he realized that his uniform was the most debated subject in Pakistan today but it also was a complex issue. There were also other issues such as "restructuring of national economy, and bringing about social changes in Pakistan that require continuity in policies," he said.

Besides domestic policies, he said, there was also a need for carrying forward the policies that affect Pakistan's relations with other nations. The most important among them, he said, was the current peace process between India and Pakistan.

"It needs courage and boldness to sustain these policies," he said. In the recent past, he said, terrorism was allowed to prosper in Pakistan but the silent and voiceless majority was always against it and is now reasserting itself.

President Musharraf said issues such as the blasphemy law and the Hudood ordinance also needed to be addressed. Pakistan, he said, was a country of 150 million, which offers lucrative and profitable returns on foreign investment. "But we have not been able to project the softer face of the Pakistani society and that's why we have not been able to attract investors," he said. He also stressed the need for US help in combating poverty and illiteracy, which he described as issues that 'form the core of causes of terrorism'.

President Musharraf said Pakistan was committed to ridding the country of terrorist groups and their supporters. "We will end terrorism and Al Qaeda presence in Pakistan," he stressed.

TRILATERAL MEETING: Later on Tuesday, President Musharraf was to join US President George W. Bush and his Afghan counterpart Hamid Karzai for a trilateral meeting seeking to ensure peace and security during the Afghan elections.

Terrorism, Afghan elections and the registration of Afghan refugees living in Pakistan will be discussed in the meeting, President Musharraf told reporters. Talking to Pakistani newsmen after attending the inaugural session of the 59th UN General Assembly, he said the registration would allow the refugees to participate in the presidential election.

"We would take action against any terrorist hiding in Pakistan," said Gen Musharraf while expressing his support to the electoral process in Afghanistan. He denied speculations that the US and Afghan governments were forcing Pakistan to monitor the Pakistan-Afghan border without fulfilling their own responsibilities. They were not asking us to do so and even if they did, we are not going to accept this responsibility, he said.

Gen Musharraf described terrorism as Pakistan's number one problem, which was also preventing economic and social development. But Pakistan, he added, was already doing its best to fight terrorism. "Tell me, who is doing more than Pakistan," he asked, adding that he felt upset when people doubted Pakistan's sincerity to fighting terrorism.

Commenting on President Bush's address to the General Assembly, Pakistan already had a fully functional democracy as Mr Bush had defined in his speech. There was nothing in Mr Bush's speech to cause us concern in this regard. Parliament and democratic institutions were working on track and all was well, he said.

Answering a question about his meeting with Indian Prime Minister Manmohan Singh on Sept 24, the president said it was an important meeting. The dialogue with India, he said, was still in its initial stage and "we have to move forward to take this process to a logical conclusion". The peace process, he said, could help resolve all issues including the core issue of Kashmir.

The president said there was no proposal to accept LoC as a permanent border and there was no reason for Pakistan to accept this change of status. Pakistan, he said, wanted a purposeful and meaningful dialogue with India on all issues.