President Pervez Musharraf has said that Pakistan was ready to reduce the number of its troops if Kashmir issue was settled and South Asia was declared nuclear free zone but made it clear that the country would never sideline the Kashmir issue. ‘‘We have already offered and we are still ready to reduce the number of our troops if Kashmir issue is addressed and South Asia is declared nuclear free zone,’’ The News quoted Gen Musharraf as saying in an interview to a German TV yesterday. However, he maintained that Pakistan would continue to maintain conventional and non-conventional military balance in the region. Musharraf pointing out that there would be no compromise on their honour and dignity, said ‘‘we do not want war but peaceful resolution of all disputes’’. ‘‘We want resolution of all disputes — that does not mean that we will ever sideline the Kashmir issue,’’ he underlined while addressing officers and engineers of Pakistan Ordnance Factories in Wah here, the paper said. The President said ultimate peace could be achieved through resolution of disputes and added it had no aggressive designs and its weapons production capability was meant for peace with honour and dignity. Musharraf said the country had no threats from outside but ‘‘the threat was from within Pakistan.’’