Islamabad: Pakistan will extend its "full political, moral and diplomatic support" to Kashmiri people, Prime Minister Yousuf Raza Gilani said on Thursday and underlined the need to resolve the Kashmir issue through negotiations.

Gilani made the remarks while addressing a session of the Council of Pakistan-occupied Kashmir that was held in Islamabad to approve the body's budget for 2011-12.

Pakistan and India "stood at the crossroad of history," he said.

The government and people of Pakistan will "always stand by their Kashmiri brethren in their quest for self-determination" and continue to extend their "full political, moral and diplomatic support" to them, he said.

"The Kashmir cause was close to the hearts of every Pakistani and their commitment to their cause of self-determination was unwavering," he said.

Pakistan wants the "peaceful and negotiated resolution" of the issue in accordance with UN Security Council resolutions and the aspirations of the people of Jammu and Kashmir, he added.

Islamabad has been making consistent efforts to project the Kashmiri cause at international forums like the United Nations and the OIC, he said.

"Pakistan always consulted the Kashmiri leadership in this regard and Foreign Minister Hina Rabbani Khar, during her visit to India, also took the Kashmiri leadership into confidence," Gilani said.

The meeting chaired by Gilani approved the Council's 2011-12 budget of Rs 8352.234 million and the revised estimates of Rs 8632.065 million for 2010-11, an official statement said.

A shortfall of Rs 2160.534 million would be met through savings, increase in income tax and a grant of Rs 1600 million from the Pakistan government.

The meeting was also attended by Foreign Minister Khar, Minister for Religious Affairs Syed Khurshid Shah and parliamentarian Sherry Rehman.