US President Barack Obama on Sunday said Pakistan's fight against terrorism was not proceeding at a quick enough pace and urged its neighbour India to push for peace talks, DPA reported.
Obama made the comments to college students in Mumbai, India when asked why Washington had never called Pakistan a terrorist state.
Mumbai was the scene of multiple attacks in November 2008 by Pakistani gunmen that killed 166 people. The carnage derailed a five-year-old India-Pakistan peace process as New Delhi accused Islamabad of backing the militants.
"I think the Pakistan government now understands the potential threat that exists within their borders. I think more Pakistanis have been killed by terrorists inside Pakistan than probably anywhere else," Obama said.
"Now, progress is not as quick as we'd like, partly because when you get into some of the north-west territories, these are very difficult terrain, very entrenched."
"The Pakistani army has actually shifted some of its emphasis and focus into those areas but that is not originally what their armed forces were designed to do so they are having to adapt and adjust to these new areas and new realties," Obama added.
He said there was a growing realisation that defeating extremist elements could not happen overnight.
"So a lot of feeling has been to be honest and forthright with Pakistan, to say we are your friend, this is a problem and we will help you but the problem has to be addressed," he said.
Mentioning that New Delhi had the biggest stake in Pakistan's success, Obama also prodded India and Pakistan to begin the peace dialogue on less controversial issues.
"I think that that if Pakistan is unstable thats bad for India. if Pakistan is stable and prosperous thats good," he said.
"My hope is that over time, trust develops between the two countries, that dialogue begins, perhaps on less controversial issues, building up to more controversial issues," he added.
While India has been demanding Islamabad take strong action against anti-India militants operating from its soil, Pakistan has often said dispute over the Himalayan region of Kashmir was a "core issue" bedevilling ties between the neighbours.