Islamabad, Aug 2 (IANS) President Asif Ali Zardari has called for an early finalisation of a five-year engagement plan between Pakistan and the European Union.

Talking to Foreign Minister of Poland Rodoslaw Sikorski here, Zardari said Pakistan was facing economic difficulties mainly due to the war against terror and the European Union's trade package for Pakistan would help it overcome economic difficulties.

The president Monday also emphasized upon early commencement of negotiations for EU-Pakistan Free Trade Agreement.

Discussing Pakistan's role against terror, the president spoke of the sacrifices made by Pakistan and the huge losses that it had to face in terms of human and material losses.

He said terrorism was multi-dimensional and stressed that Pakistan believed political dialogue and socio-economic development were no less important for fighting it, reported Associated Press of Pakistan.

Discussing the regional situation, Zardari reiterated Pakistan's desire for a peaceful and stable Afghanistan and its abiding interest in promoting long-term stability, security, good governance and economic development of Afghanistan.

The president said Pakistan desired to have friendly, cooperative and good neighbourly relations with all the neighbours and believed that it was a time to resolve all outstanding issues peacefully in a just manner.

He said Pakistan believes in policy of constructive and result-oriented engagement to resolve all issues, as dialogue was the only way forward.