ISLAMABAD, May 21: Foreign Minister Shah Mehmood Qureshi has said that Pakistan is ready for ‘grand reconciliation’ with India and the next round of peace talks will begin in mid-July in New Delhi.

“Our government is ready for grand reconciliation for the resolution of longstanding issues that need to be resolved peacefully through dialogue and in a manner that is dignified and commensurate with the self-respect of the involved parties,” Mr Qureshi said at a joint press conference with Indian External Affairs Minister Pranab Mukherjee after the political review of the fourth round of ‘composite dialogue’ on Wednesday.

Although the foreign minister did not unveil the specifics of the grand reconciliation offer, it was a clear indication that Pakistan was ready to show flexibility on some thorny issues that had been straining their relations and impeding progress in talks taking place since 2004, if India reciprocated.

Mr Qureshi said Pakistan was open to innovative ideas that could facilitate the dialogue and create a more enabling environment. “We don’t have a shut mind.”

Mr Mukherjee said India was equally determined to resolve all core issues and overcome hurdles in improving its ties with Pakistan. “I’m going back with a sense of satisfaction,” he said.

Notwithstanding the cheerful mood of the two ministers, it was apparent that they had made no substantial progress on major issues and were banking on the working relationship they had built during the talks to make progress in the next round.

The only highlight of the talks held after a hiatus of seven months was the signing of an accord to provide consular access to prisoners in each other’s jails and agreement on some minor confidence-building measures.

Both sides avoided making any statement that could vitiate the cordial atmosphere in the dialogue.

The two countries were hopeful of progress on certain major issues in coming months.

Mr Qureshi said the schedule of Indian Prime Minister Manmohan Singh’s visit to Pakistan later this year would be announced after ‘some more progress’. The foreign minister will visit New Delhi in June.

He said there were certain areas where progress had not been appreciable and which needed to be focussed. He specifically pointed out the Jammu and Kashmir issue saying there had been no significant forward movement in this regard. “Along with the CBMs, this core issue has to be meaningfully addressed,” he said, adding that inclusion of Kahmiris in the process would be useful.

Mr Qureshi emphasised that progress on all eight segments of composite dialogue had to be in tandem.

Referring to Siachen and Sir Creek, the foreign minister said resolution of certain issues was ‘doable’. He said Pakistan was ‘hopeful’ about them after the interaction.

During the talks, Pakistan tabled new proposals on Siachen, which Mr Qureshi said could bridge the differences and help the two sides move forward.

Mr Mukherjee said progress had been made on Siachen but more time would be required for deliberations on the issue. He cautioned that no timeframe should be fixed for progress.

He said economic cooperation was one of the ‘principal subjects’ in his talks with Pakistani leadership. He said there was a lot of scope of economic cooperation which could also complement the progress on resolving major issues.

He said economic cooperation should not be held hostage to lack of progress on unresolved issues.

Negating the impression that India was engaged in an arms race, he said the Indian government was more concerned about pressing economic issues and addressing problems of poverty and backwardness. But at the same time he observed that his government could not be oblivious of the country’s defence requirements.

Both sides agreed to enhance their counter-terrorism cooperation by activating the Anti-Terrorism Mechanism and holding a meeting in this regard before the fifth round in July.

Pakistan urged India to resolve the issue of transit fee for the Iran-Pakistan-India gas pipeline, terming it a good CBM.

The two ministers agreed on making the South Asian Association for Regional Cooperation more effective.

JOINT STATEMENT: A joint statement issued after the talks enumerated the Kashmir-related CBMs agreed in the meeting, including an increase in the frequency of Muzaffarabad-Srinagar and Rawalkot-Poonch bus services, modalities for intra-Kashmir trade and truck service and implementation of other measures to expand and facilitate travel for which a meeting of the working group on cross-LoC CBMs would be convened within two months.