Pakistan President Pervez Musharraf has admitted that terrorists operating in Kashmir have nexus with Al Qaeda, Taliban and Pakistani extremists, which is a "very dangerous" combination.

The admission came in in the course of an interview he gave to American television ABC ahead of US President George W Bush's visit to Pakistan later this week.

Responding to questions on the fight against Al Qaeda, Musharraf said with Pakistan's help more than three-quarters of the terrorist group's leaders have been captured. He then went on to state that apart from military measures, "bigger issues of political disputes" needed to be resolved and listed Palestine and Kashmir among such issues.

The Kashmir dispute, he contended, has a fallout on Pakistan. "That has its fallout on people wanting to operate in Kashmir having nexus with the Al Qaeda or the Taliban or the extremists who live in our society. So this becomes a very, very dangerous nexus and combination. So therefore, Kashmir dispute and Palestinian dispute, both are ripe for resolution and we must resolve them," he said.