Pakistan on Tuesday said the trust deficit with India had reduced but stuck to its earlier stand that progress in economic relations would largely depend on forward movement on the Jammu and Kashmir issue.

"The atmospherics are better today than they were three years ago. The trust deficit has reduced," Pakistan Prime Minister Shaukat Aziz told television channel CNN-IBN.

Aziz said while there was gradual improvement in the overall economic relations between the two countries, Pakistan's position was 'very clear.'

"We are consistent in our stand that they have to move in tandem with dispute resolution and as we see progress on Kashmir, that will determine the progress on economic relations," he said.

His comments come close on the heels of the visit of External Affairs Minister Pranab Mukherjee to Islamabad. Mukherjee had said that India wanted a calibrated approach to resolve political differences between the two countries.

"We need to do much more to expand our ties and more tourists should come by. Pakistan seeks a level-playing field and we will always honour our commitments. Under Safta, we are required to give each other a level playing field," he said.