US Secretary of State Colin Powell has hinted to Pakistan that prospects of dialogue with India would improve if Islamabad puts an end to cross-border terrorism in Jammu and Kashmir.

"I think many people are watching activity that is occurring across the Line of Control to see whether the rate of that activity, if it went down, might be an encouraging step," Powell said in Washington on Wednesday after a meeting with Pakistani Foreign Minister Kurshid Mahmud Kasuri.

"I think we have to find a way to get the dialogue started. Some suggestions have been made that perhaps some economic moves from one side to the other might be a way to jumpstart it.

"We will continue to work hard at it...the United States is committed to doing everything we can to get the dialogue going," Powell said.