Pakistan said demilitarisation in Kashmir would improve the atmosphere and conditions for the Kashmiris, who he alleged are subjected to continuous intimidation by Indian security forces.
The Indian side is likely to stress that Pakistan is not doing enough to end terrorism being perpetrated by groups based in that country and needed to do much more if the peace process was to continue.
The two countries also decided to set up a 'dedicated and secure' hotline between their foreign secretaries.
Foreign Secretary Shyam Saran firmly ruled out any change in borders.
The two countries will also revive after 16 years the Joint Commission under which cooperation in the fields of trade, energy, telecom, security, visa and consular access to detained nationals of the respective countries will be covered.
In yet another confidence building measure, a business delegation led by Siraj Kassam Teli, president, Karachi Chamber of Commerce and Industry met Commerce and Industry Minister Arun Jaitley in New Delhi on Thursday.
Militant infrastructure across the Line of Control in Pakistan-occupied Kashmir is intact, and that is evident from the recent infiltration bids in Uri sector of Baramulla district, the army said on Friday.
Despite the recent confidence-building measures between India and Pakistan, infiltration of militants into Jammu and Kashmir is continuing and militant infrastructure in Pakistan is intact, a senior army officer said in Srinagar on Sunday.
With the issue of pre-notification on missile tests high on agenda, India and Pakistan held their third round of expert-level talks on nuclear confidence-building measures (CBMs) in New Delhi on Friday.
The prime minister will arrive in Islamabad on Saturday to attend the South Asian Association for Regional Cooperation summit.
2007 will be remembered as one of the most turbulent years in Pakistan's history, with unprecedented public protests and judicial activism prompting Musharraf to proclaim emergency ahead of parliamentary polls.
He said Pakistan and India would have to show sincerity.
Omar said that the NC has been telling them time and again that if they are not ready to form the government, they should be bold enough to break the alliance.
The two sides agreed to continue dialogue to find a peaceful negotiated settlement of all bilateral issues including Jammu and Kashmir.
"I am going to propose the holding of such manoeuvres," Singh, also chairman, Chiefs of Staff Committee of the Indian Armed Forces, said on the eve of his departure for Beijing on a week-long visit as the head of a tri-service delegation.
The group on CBMs favoured opening of new cross-LoC routes to increase frequency of bus services which, at present, is confined to Srinagar-Muzaffarabad and Poonch-Rawalkot.
As a part of confidence building measures between the two countries, 191 people of divided Indian and Pakistani families were allowed to cross over the Line of Control at Chakan-da-Bagh point in Poonch district of Jammu and Kashmir on Monday.
PDP chief Mehbooba Mufti said on Sunday the dialogue process initiated by Prime Minister Narendra Modi with Jammu and Kashmir's mainstream leadership can gain credibility by ending what she called an 'era of oppression and suppression' in the union territory and understanding that a dissenting voice is not a criminal act.
The talks will continue tomorrow when the two sides would discuss the Kashmir issue.
The Union defence minister, however, said India wanted to strengthen its "good" relations with Pakistan.
Mehbooba was addressing a joint press conference with Omar Abdullah and Hurriyat Conference Chief Mirwaiz Umer Farooq on the sidelines of the Hindustan Times Summit.
The two countries already have a bus service from Srinagar to Muzaffarabad.
Also, the two sides decided to upgrade the existing hotline between their Directors-General of Military Operations by September this year.
