Former Pakistan President Pervez Musharraf has said that anyone involved in November's terrorist attacks in Mumbai must be punished, but warned that 'hysteria' in India over the deadly siege threatens stability on the Indian subcontinent.

"If there is proof, there must be action," Musharraf said during a speaking event at Stanford University on Friday. But he added, "Let us not get hyper about it and whip up hysteria in the country so that the process of peace gets totally disrupted."