United States rejected possibility of mediation between Pakistan and India over Kashmir dispute as PAK-US strategic dialogue entered third phase on Friday.

According to the US officials, United States considered boosting up aid for Pakistan whereas the Washington also demanded Islamabad to do more in the war against terror.

U.S envoy Richard Holbrooke said that the US wanted the democratic system in Pakistan to continue.

Talking to reporters in Washington, Richard Holbrooke said that US is supportive of Pakistan and India resolving their outstanding issues peacefully, adding that the US could not mediate between nuclear armed countries over Kashmir issue.

Rejecting the reports of direct contacts with Taliban in Afghanistan, he said that it was up to Afghan people to decide about their future.