"As far as our borders with India are concerned, we are having a very nice relationship with India, the best of the relationship we have ever had. The confidence-building measures are working very well and I think the defence of Pakistan today is much safer than five years ago," Mukhtar told Dawn TV channel.
He said the two countries had shown flexibility from their traditional stand on the Kashmir and the Kashmir issue will be resolved only through the opening up of the borders and greater inter-mingling between Kashmiris from both sides.
"I am sure that both the countries are showing flexibility from their traditional positions. We don't want to fight a war," Mukhtar said.
"Today is the time for economic wars and we must prepare ourselves. Are there other problems in Pakistan and India? There are food shortages, the oil problem, the electricity problem and these problems can't be solved if we are at war with each other," Mukhtar said.
He said Pakistan was not facing any major security challenges "except for the problems we are having on the border with Afghanistan, where the other party is complaining that people are crossing over".
He added, "The CBMs with Afghanistan are not all that strong." Pointing out that it was not possible to totally control the border with Afghanistan, he said Pakistan is trying to apprehend all Al Qaida operatives within its territory.
"I don't think that they would be in hundreds, it won't be more than hundreds, including all the leadership. We are trying our best to get hold of that leadership and to take them to courts and to see what we can do with them," he said.
Mukhtar also said, "I don't think Osama bin Laden is in Pakistan because we have combed our area."
The Defence minister also dismissed concerns about the safety of Pakistan's nuclear arsenal, which is in "the safest of hands".
