In his message to the nation, he promised to "lay the foundation of genuine democracy" in Pakistan but stopped well short of announcing a timeframe for general elections. Musharraf said the cornerstone of Pakistan, cleaved from India as an Islamic state at the end of British rule in 1947, was its message of hope to all Muslims in South Asia.

"The sacrifices rendered by our Kashmiri brethren for their right of self-determination, despite being subjugated to the worst form of atrocities and abuses by the Indians ... is living proof of this," he said.

"Pakistan stands united with its Kashmiri brothers and sisters in their just cause and will continue to extend all moral, diplomatic and political support to their indigenous struggle against state-sponsored terrorism."

He said New Delhi was to blame for the failure of a recent peace initiative by the leading Muslim groups fighting Indian rule in the divided Himalayan territory, which has led to a string of militant attacks.

"South Asia is an extremely volatile region due to the intractability of the Indian government over Kashmir. Let them come forward so that we can work together for peace in the region which is not possible without a resolution of the Kashmir dispute," he said.

More than 30,000 people rallied Monday under the banners of Islamic groups fighting Indian rule in Kashmir as Pakistan marked the 53rd anniversary of its independence, shouting slogans in support of jihad (holy war) in Kashmir and against Indian "atrocities" in the divided Himalayan territory, the source of two wars between Pakistan and India since 1947.

Witnesses said around 10,000 gathered in southern Karachi under the emblem of Jaish-e-Mohammad, an Islamic group launched by Masood Azhar, a Muslim cleric released by India in December as part of negotiations to end an Indian airline hijacking.

An offer of peace talks from the Hizbul Mujahideen group collapsed last week when India refused to allow Pakistan a place in the dialogue because of its alleged military engagement in the 11-year-old Islamic struggles.

Musharraf has come under mounting international pressure to reduce tensions in Kashmir the cause of two of the three wars between Pakistan and India - but his repeated calls for dialogue with New Delhi have been rebuffed. He is also under a microscope in terms of his plans to return Pakistan to democracy following the coup in October in which he toppled Prime Minister Nawaz Sharif.

Musharraf has pledged local-body polls starting from December and says he will abide by a Supreme Court ruling, which validated the coup and gave him until October 12, 2002, to hold general elections.

He said an ambitious devolution plan to be unveiled in a speech at 8 p.m. (1500 GMT) Monday would lead to "genuine democracy from the grassroots upward, in which the people can directly participate."

But he appeared no closer to satisfying the persistent demands of the international community for a "roadmap" to Pakistan's return to civilian rule. Instead he used the Independence Day message to blast the military's traditional enemy - politicians.

"It is the elite that has exploited the people and abused the immense potential of the country for their petty personal gains in total disregard of greater national interests," he said.

The devolution plan, which aims to revive district and communal assemblies and transfer power from the provinces to the village level, is the centerpiece of Independence Day along with the official celebrations.

Firecrackers resounded throughout the capital at the stroke of midnight but the main event here was a flag hoisting ceremony performed by President Muhammad Rafiq Tarar at 8 a.m.

Security has been tightened following a bomb attack last year and a spate of largely unexplained blasts in recent weeks. In southwestern Baluchistan province, an Islamist outfit calling itself the Baluchistan Liberation Army has threatened to disrupt Independence Day events.

"Borders are being monitored with strict vigilance," an official was quoted as saying in the News, amid reports that Indian agents were preparing to "sabotage" the celebrations. In India, the government has sounded a nationwide alert ahead of its Independence Day celebrations on Tuesday amid the renewed violence in its zone of Kashmir.

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