— Photo: PTI

WIDE-RANGING TALKS: Prime Minister Manmohan Singh and his Pakistan counterpart Shaukat Aziz hold talks in New Delhi on Wednesday.

NEW DELHI: " India and Pakistan will press ahead with a proposed gas pipeline from Iran," an official Pakistani statement said after talks between Prime Ministers Manmohan Singh and Shaukat Aziz here on Wednesday morning.

Reaffirming their commitment to sincerely and seriously pursue the project, the release said, "They [the two leaders] expressed satisfaction over the progress made so far in the technical-level talks among the three sides."

According to the statement, Dr. Singh agreed that Pakistan would be provided with periodic status reports on the probe into the February 19 firebombing of the Samjhauta Express as most of the victims were Pakistanis.

"The Indian Prime Minister reiterated the Government of India's determination to pay compensation to the victims of the terrorist incident," the release said after delegation-level and one-to-one talks between the two leaders.

While an official Indian statement said the two leaders discussed a wide range of issues including trade, energy, banking and air connectivity, the Pakistani side was more specific.

The two leaders "agreed on granting permission to their respective banks to open branches and increasing air links between the countries," the Pakistani release stated.

They are said to have reviewed the status of the composite dialogue and discussed the issues of Jammu and Kashmir, Siachen and Sir Creek. "The Pakistan Prime Minister underscored the importance of resolving Kashmir for durable peace... "

"The Prime Ministers also agreed that the issue of prisoners should be addressed with a humanitarian approach," the Pakistani statement said. Mr. Aziz agreed to release the boats of Indian fishermen captured in Pakistani waters.

The Indian statement quoted the Pakistani leader as saying Islamabad was ready to export cement to India taking advantage of its duty reduction.

"Nothing new in comment"

Later, External Affairs Minister Pranab Mukherjee said there was "nothing new" in Mr. Aziz's comment on Tuesday that Kashmir was a "core issue" in bilateral relations.

Pointing out that India and Pakistan were discussing a number of issues, including Kashmir, Mr. Mukherjee stressed that the ceasefire between the two countries was holding and a number of confidence-building measures along the Line of Control had been implemented.

"I am not very much perturbed at a particular phrase [used by Mr. Aziz]," he told a post-SAARC press conference.

Asked about a reference made by the Pakistani leader to joint management of Kashmir on Tuesday, Mr. Mukherjee said he checked with Mr. Aziz and the latter pointed out that he provided no details of the ongoing India-Pakistan discussions to the press.

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