Indian and Pakistani prime ministers at their meeting in Thimphu (Bhutan) almost a fortnight ago had agreed to restart the stalled peace process and work towards rebuilding trust between the two countries.

Mr Qureshi looked upbeat ahead of the talks with his Indian counterpart. He told a group of former foreign ministers, foreign secretaries and ambassadors at a consultative session “Pakistan wants that the momentum generated at Thimphu be sustained”.

It appears that both sides are keen to see their foreign ministers to meet at the earliest. Their interaction would be followed by foreign secretaries' talks.

But at the core of all these discussions would be the search for measures that could help 'bridge the gap and build confidence to take the peace process forward', which is also the primary mandate given to the two foreign ministers by their prime ministers.

Diplomatic sources suggest that although a number of measures will be tried out for promoting confidence and trust, progress on developing a mechanism for counter-terrorism cooperation and improvement in human rights situation in occupied Kashmir would be the key to any forward movement.

“Agreement on a counter-terrorism cooperation framework will be a clincher,” a senior Pakistani diplomat said.

Foreign Minister Qureshi, in his meeting with former diplomats, had also stressed on bilateral cooperation against terrorism. “Terrorism is a regional issue and has to be dealt with through cooperation,” he was quoted as having told participants of the meeting.

Indian Home Minister P. Chidambaram, who would participate in the Saarc interior ministers meeting in Islamabad next month, is likely to discuss such an arrangement with Pakistani officials on the margins of the conference.

Indians were not comfortable with a Joint Anti-Terrorism Mechanism, which till the suspension of peace process, formed the basis for cooperation between premier investigation agencies of the two countries. New Delhi considered the 'junior level' anti-terror mechanism as 'unproductive' and is pushing for a more vibrant and strong system.

On Kashmir, Pakistan hopes that the Indian government would agree to take steps for reducing human rights violations and release of political prisoners. “If India agrees to withdraw Armed Forces Special Powers Act from the occupied valley it would be a positive sign,” a diplomat noted.

Mr Qureshi discussed the Kashmir dispute in relation to the way forward in bilateral relations with the former envoys, saying “The Pakistan government has taken a principled stance on the issue.”

The foreign minister also met Indus Water Commissioner Syed Jamaat Ali Shah and discussed issues related to water and implementation of the 1960 Indus Waters Treaty between Pakistan and India.

The foreign minister stressed that differences and disputes between Pakistan and India on the Kishanganga project should be addressed in accordance with the dispute-settlement mechanism laid down in the Indus Treaty.

Notwithstanding the bonhomie in the air, the progress in the trial of Mumbai suspects by a Rawalpindi court is certain to have an impact on normalisation of relations.