· So far home, commerce, defence secretary have held talks
· They have agreed
o On blueprint for visa liberalisation
o Pakistan ahs agreed in principle to offer MFN to India
o Both agreed to shift from positive to negative list of items for trade
o Pakistan has shown interest in allowing indians to invest in energy and fuel sector
· Earlier mushraff and manmohan had come close to reachign a solution on kashmir issue through a 4 step formula
· The 4 steps were
o Maintain peace along LoC.
§ It has been mor eor less epaceful since 2003
o Demilitarise kashmir valley
§ Positive signs on this considering that no major army interference was seen during the protests in valley last summer
o Strengthen local governance and reduce interference of center in state affairs
§ The succesfull panchayat elections after 33 years is a good sign
o Make borders irrelevant through cross LoC linkages and cross border management
§ Despite mumbai attacks, bus services acrosss border werent suspended
§ Cross border trade is on the rise
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