India expressed its deep concern over terrorism emanating from across the border while Pakistan braced itself to raise the Jammu and Kashmir issue as the foreign secretaries of the two countries opened a two-day dialogue here on Thursday to discuss various outstanding issues that have bedevilled ties between them.

Foreign Secretary Nirupama Rao met her Pakistani counterpart Salman Bashir at the Foreign Office in Islamabad to discuss the issue of peace and security, including confidence-building measures (CBMs).

Official sources said there was progress in the talks on nuclear and cross-LoC CBMs and the two sides could announce some far-reaching decisions tomorrow to give an impetus to the normalisation process. The two countries could also increase the frequency of the Srinagar-Muzaffarabad bus and streamline trade between Kashmir on both sides of the border.

“All aspects of peace and security have been discussed…terrorism is an issue that is confronting both nations and has affected peace and security in both countries,” MEA spokesman Vishnu Prakash said after the first round of talks between the two sides lasting nearly three hours.

It is understood that India conveyed to Islamabad its disappointment over the 26/11 trial’s slow progress. New Delhi also reportedly drew attention towards the revelations made by Pakistan-born Canadian Tahawwur Hussain Rana in a Chicago court, linking Pakistan’s ISI with the Mumbai attacks.

Pakistan sources said Islamabad wanted to know the progress in the Samjhauta Express blasts case and also inquired about Col Purohit’s role in the cross-border train explosions.

Pakistan spokesperson Tehmina Janjua said the talks were held in a ‘cordial atmosphere’, adding that the foreign secretaries discussed peace and security today and would discuss Jammu and Kashmir and promotion of friendly exchanges tomorrow.

The two diplomats are also understood to have discussed the probable dates of Pakistan Foreign Minister’s visit to India in July to take stock of the dialogue process that was revived in February after a two-year hiatus in the wake of the Mumbai attacks.

Both sides have quite carefully avoided raising expectations from the talks. “Talks with Pakistan is a process…it is not an end in itself,” sources said.

In the backdrop of upcoming elections in Pakistan-occupied Kashmir (PoK) on Sunday, Islamabad appeared determined to raise the Kashmir issue in a big way tomorrow. It was quite evident from the statement made to the media by its Minister of State for Foreign Affairs Hina Rabbani Khar. Describing Kashmir as the core issue between the two countries, she said the two nations could not make much headway until the issue was resolved. The Indian sources would, however, not agree to a suggestion that a separate discussion between the two sides on J&K could be called a ‘victory’ for Pakistan. The J&K issue had been discussed separately by the two sides in the past too.

Rao, who arrived here this morning in a special aircraft, said she had come to Pakistan with an open mind and a constructive spirit in order to work towards building trust and confidence in the bilateral relationship and thereby leading to an eventual normalisation of ties. “We wish to see a stable, peaceful and prosperous Pakistan,” she said.