In a statement read out to national and international media at the prime minister's house here, Sharif blamed India for the current escalation along the line of control and warned that the bilateral peace process he had personally initiated with India two years ago was in "grievous danger".

"Let me reiterate our belief that the current situation must be defused," he said adding that Pakistan is exerting all efforts to prevent any deterioration and to strengthen peace. "In order to demonstrate our goodwill and in keeping with Islamic traditions I have ordered immediate release of pilot K Nachiketa," he said.

Sharif told newsmen that the original plan was to send back Nachiketa along with foreign minister Sartaj Aziz but he would be handed over immediately to Indian highcommissioner here G Parthasarthy as a date for Aziz's trip has not been finalised.

Pakistan is "resolved" to defuse the situation and Aziz is prepared to visit New Delhi "immediately", he added.