In remarks to local journalists late on Wednesday, Musharraf said there was no pressure on Pakistan from the United States to slow atomic arms development despite a damaging proliferation scandal involving one of its top nuclear scientists.

"It is a joke," Musharraf said, responding to a question about possible US pressure.

"We are conducting a missile test every second day. I give you important news that within two months Pakistan will conduct a big missile test," he added in remarks quoted by Jang, the leading Urdu newspaper.

China's Xinhua news agency quoted the president as saying Pakistan would conduct an important "nuclear" test, adding that he did not specify whether he meant a nuclear bomb or a missile.

But Information Minister Sheikh Rashid Ahmed, who was with Musharraf when he made the remarks, said he clearly mentioned a missile test.

"He said missile test. I was there," Ahmed said.

Pakistan has not conducted a nuclear test since May, 1998, when it carried out a series of experiments in response to arch-rival India.

On June 20 this year, India and Pakistan renewed a moratorium on nuclear test explosions following talks in New Delhi, although the agreement allowed an exception to be made if either country believed "extraordinary events" threatened its interests.

Pakistan and India carry out fairly frequent missile tests. On June 4, Pakistan successfully test fired its nuclear-capable Ghauri missile, able to carry warheads 1,500 km.

"We are taking our nuclear programme forward," Musharraf said. "We will continue to manufacture nuclear (capable) missiles and it will be a madman who accuses me of rolling back the nuclear missile programme."

Many Pakistanis feared the president would be pressured by Washington to cut back nuclear weapons development after Abdul Qadeer Khan, revered as the father of the country's atomic bomb, confessed to leaking secrets to Iran, North Korea and Libya.

The United States called on Pakistan to root out the proliferation network, but avoided harsher censure for a military leader deemed vital in the US war on terror for his support of the war in Afghanistan and crackdown on Islamic militancy.