"We hope any change in the government in India will not affect the peace process between the two countries," Information Minister Sheikh Rashid told AFP from Kuala Lumpur, where he is attending a Non-Aligned Movement conference.

"The desire for peace is not linked to individuals."

Vajpayee's right-leaning Hindu nationalist National Democratic Alliance conceded a shock defeat in countrywide elections Thursday.

The Pakistani government issued a statement saying it "looks forward to renewing the quest for promoting peace and stability in South Asia with the new government in India."

"Pakistan will endeavour to seek a peaceful settlement of all outstanding issues between the two countries including the Jammu and Kashmir dispute," the statement from the foreign ministry said.

Vajpayee is credited with initiating the barely year-old peace bid with Pakistan, offering a "hand of friendship" to India's south Asian neighbour in a landmark speech in April last year.

He and Pakistani President Pervez Musharraf cemented the normalisation moves with a landmark agreement in January, finalised at a regional summit in Islamabad, to resolve all disputes including the thorny issue of Kashmir.

Vajpayee acknowledged Kashmir as a bilateral dispute which needed resolution through talks with Pakistan, and Musharraf vowed to stamp out militancy in all areas under Pakistan's control -- a commitment seen as a vow to curb anti-India militants operating out of the Pakistani-controlled part of Kashmir.

India's opposition Congress party, which is poised to take power, pledged to forge ahead with the peace process.

"The Congress is committed to working towards creating lasting peace in the region," Congress spokesman Anand Sharma told AFP.

"We have consistently supported the dialogue between two countries and had urged the outgoing BJP government to continue with the process of negotiation and so there is no question of any change."

Pakistan's foreign ministry spokesman Masood Khan welcomed the Congress statement.

"We sincerely hope that the political developments in India would not cast a shadow on the composite dialogue process, because India had evolved its position on dialogue with Pakistan on the basis of national consensus," Khan told AFP.

"The momentum generated by the CBMs (confidence building measures) should be maintained and we should implement the calendar of activities agreed to between the two governments."

According to a timetable fixed in February, both countries' foreign secretaries are to meet in June for talks on Kashmir, followed by talks in July on seven other issues, including terrorism.

Foreign ministers are to join foreign secretaries for talks in August to review progress.

WAR.WIRE