"We know they are a nuclear power and they know we are. We inform each other when there are missile tests. There is no violation of our confidence-building measures," Musharraf said at a briefing with journalists.

"Pakistan's policy is based on minimum defensive deterrence. When they (India) went nuclear, we went nuclear. When they started producing missiles, we did. We believe in maintaining our dignity and national sovereignty," he said.

Relations between Pakistan and India have improved in recent months via what Musharraf described as a "twin-track approach of confidence-building measures and dialogue."

"There is a thaw. I see light at the end of the tunnel," he said.

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