He, however, he did not give a clear reply as to why Pakistan has not been asking China to get Azhar declared as an international terrorist by the United Nations.
"Why should China be involved when it has nothing to do with him (Azhar)," Musharraf told News Nation, according to a release issued by the TV channel.
A proposal is pending before the UN Security Council for declaring Azhar as an international terrorist but China has been blocking it, claiming that there is not enough evidence to prove that he is a terrorist.
It also quoted Musharraf as saying that the Nawaz Sharif government lacks aggression.
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To a question on whether a political leadership or Army is better suited for Pakistan's development, Musharraf said the country had witnessed growth when Army was in power.
On Pakistan's diminishing relations with United States, he said there are certain contentious issues which are being addressed by Pakistan Army.
When referred to the 'surgical strike' and military might of India, he said, Pakistan is a nuclear power with a strong army which can't be bullied.
On Prime Minister Narendra Modi's sudden visit to Pakistan and his meeting with Sharif, he said shaking hands is just an artificial move, but for a formal solution, something concrete needs to be done.
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