New York/New Delhi - The leaders of India and Pakistan agreed to jump-start peace talks with new discussions planned between the nuclear-armed neighbours before the end of the year, the Indian Prime Minister's Office confirmed Thursday. Indian Prime Minister Manmohan Singh and Pakistani President Asif Ali Zardari, who took office this month, came to the decision when they met Wednesday night in New York on the sidelines of the UN General Assembly.
The two leaders also announced that trade between the two parts of the disputed Kashmir region, one administered by India and the other by Pakistan, would begin as soon as October 21.
The agreement came at a time of heightened tension between India and Pakistan. India blamed Pakistan for being behind a July blast at its embassy in Kabul, which killed 58 people, and of violating a ceasefire by firing over the Line of Control, their de-facto border that divides Kashmir.
Islamabad has denied any role in the Kabul blast.
The neighbours have fought three wars, two of them over the disputed Kashmir region. They launched their peace talks, called the composite dialogue, in 2004 to resolve outstanding disputes relating to their border, Kashmir and to promote trade.
Singh and Zardari acknowledged at their meeting Wednesday that the peace process has been under strain in recent months, a statement from the Indian prime minister's office said.
"They agreed that violence, hostility and terrorism have no place in the vision they share of their bilateral relationship and must be visibly and verifiably prevented."
India and Pakistan launched the fifth round of the composite dialogue in July but it has not moved forward due to political uncertainty in Pakistan and a recent spate of terrorist attacks.
The capitals of both countries have been recent targets of terrorists and the two leaders agreed that severe action would be taken against any elements directing or involved in terrorist acts.
The Indian police recently said its investigations had revealed that the Pakistan-based militant organization, the Lashkar-e-Taiba, was linked to the bomb blasts in Delhi in September 13 that killed 24 people.
Singh and Zardari also decided that a special meeting of a joint anti-terror action panel would be held in October to address concerns, including the Indian embassy bombing in Kabul.
They agreed that the ceasefire agreement in Kashmir should be stabilized and two road links in the region would be opened to cross-border trade.
Trade across the de facto border dividing the region has been one of the demands made during a recent agitation led by separatists in India-administered Kashmir.