Prime Minister Manmohan Singh today said India has a tense relationship with Pakistan and friendly ties with it are possible only when that country ensures that its territory is not used for terror activities against India.

He also said that India hopes to resolve in an atmosphere of friendship all outstanding issues with China.

While noting that India desires good relationship with neighbours, which are beneficial to all countries of the region, Singh said, "We have had a tense relationship with Pakistan. However we wish them well.

"We want friendly relations with Pakistan. But we know this will be possible only when our neighbour will see to it that its territory is not used for terrorist activities against us," he said addressing the Congress Plenary here.

Referring to Sino-Indian ties, he said, "We believe that there is a great potential for working together with China, especially in economic matters.We have some outstanding issues with them which we hope to resolve in an atmosphere of friendship".

The Prime Minister also expressed satisfaction that the leaders of all the five permanent member countries of the United Nations would have visited the country by the end of this year.

His remark assumes significance in wake of India, which is right now a non-permanent member of the United Nations Security Council (UNSC), eyeing a permanent seat there along with other five members USA, China, Russia, Japan and the UK.

The Prime Minister said, "Our ties with Russia have traditionally been friendly and warm. We are confident that our relationships with them will continue to be excellent in future also. We are improving our relationship with the United States and other major western powers.

On India's Look East Policy, the Prime Minister said the country has paid special attention to its relations with East Asian and South Asian countries.

"We have either finalised or are in the process of finalising economic cooperation agreements with a number of East Asian and South Asian countries. Our relations with the Gulf and African countries have always been excellent and we will seek to consolidate these ties," he said.

The Prime Minister said that the country is today being looked upon in the world with respect and admiration."In the days to come, we will become even more important on the global stage.

"We will increasingly have to work with the international community in many areas," the Prime Minister said, adding, "Simultaneously we will have to remain faithful to our own principles also".

Singh said the purpose of the country?s foreign policy is to work in peaceful environment with other nations for the benefit of India as well as the world community.