This is the first time Chinese official media referred to Modi's remarks about PoK and Balochistan.
Musharraf attended the SAARC summit in 2002 at Kathmandu where he grabbed headlines with his famous handshake with the then Indian Prime Minister A B Vajpayee in a bid to reduce the mounting military tensions.
Nikhil Laxman, in Colombo, analyses 15th SAARC summit's opening day
Japan said it also understood India's need for using nuclear power to meet its energy deficit.
India on Tuesday announced that it will allow zero duty access to least developed countries of South Asia by the year end and reduce the sensitive list in respect of these nations
New Delhi's assurance was conveyed by Prime Minister Manmohan Singh during a meeting with his Nepalese counterpart G P Koirala, who is in Delhi to attend the two-day SAARC Summit starting on Tuesday.
The visiting Indian minister also met his Sri Lankan counterpart Mangala Samaraweera.
He will also review the third round of the Composite Dialogue process, Pakistan Foreign Ministry Spokesperson Tasnim Aslam told a media briefing.
Prime Minister Narendra Modi on Wednesday paid homage to the victims of horrific 26/11 Mumbai terror attacks on its sixth anniversary and saluted the security personnel while reaffirming India's commitment to combat the menace of terror and "uproot it from the face of humankind".
The two leaders, while reviewing the progress of the ongoing peace process, are also believed to have discussed Siachen and Sir Creek.
Connectivity is what SAARC needs the most but Pakistan is not interested, says Rajeev Sharma.
Koirala is currently busy in hectic consultations with his party colleagues as well as top leaders of the major political parties to form a new Interim government inclusive of the Maoists.
MEA spokesperson Raveesh Kumar said at a media briefing that the meeting, however, does not indicate any change in India's policy towards Pakistan.
Sarabjit's sister Dalbir said External Affairs Minister Pranab Mukherjee in New Delhi assured her that he will raise the issue with the Pakistan government during his visit.
No reservation on China, Japan joining SAARC as observers: PM
Natwar on a three-day visit to Bangladesh from Saturday
'There is nothing that Pakistan has done which deserves a resumption of dialogue. The assurances made in Ufa contain no commitment except a whole range of talks, which could take place without the paraphernalia associated with a joint statement of prime ministers.'
'We want to give our undivided attention and energy to the success of SAARC,' he said.
Leaders from the seven South Asian nations might come up with more concrete steps in forming an Economic Union in the Dhaka SAARC summit set for January, according to officials.
Pakistan has got the message that the Modi regime in New Delhi has brought in a new language of dialogue with Islamabad, sources well informed about the preparation for the Kathmandu meeting tell Sheela Bhatt/Rediff.com
Vajpayee, however, said he was willing to discuss economic ties with Pakistan to his visit to Islamabad.
The issue gains importance in view of the recent attempt on the life of President Gen Pervez Musharraf in Islamabad.
The Pakistan president accused India of being an 'intransigent and arrogant' power.
"It is a good news and talks between two countries should start," Pakistan Foreign Office spokesman Masood Khan told Voice of America radio.
'India has asked Pakistan to take certain steps and talks are not possible unless Pakistan convinces India on that,' Sibal said.
He did not mention the issue of Jammu and Kashmir.
Two senior judges killed in blast in Bangladesh
In a move to open up the sky in South Asia, India on Saturday unilaterally offered all Saarc nations the facility of daily air services to six metros and an unlimited number to 18 to other major destinations on a reciprocal basis.
The two leaders, who will be present in Ufa to attend the SCO summit, will be meeting on the sidelines of it.