Indo-Pak relations have remained frosty ever since the Subcontinent was divided to create Pakistan in 1947. So every sign of warming up is to be welcomed by all those who want to see a South Asia free from tension and conflicts. The two countries have already fought three wars, two of them over Kashmir which both claim. This was before both became nuclear powers. The Kashmir dispute remains unsettled, while Afghanistan, where India and Pakistan are fighting a “proxy war”, adds another dimension to the problem. Complicating the situation is the issue of terrorism. New Delhi thinks that the Pakistan military is using militant groups to put pressure on India to hold talks on Kashmir. Pakistan thinks India is using terrorism as an excuse not to negotiate. As a result no one expected any tangible outcome from the latest round of talks between the foreign secretaries of India and Pakistan which concluded in New Delhi on Thursday. The good news is that both have reiterated their commitment to fight terror with Islamabad even offering a joint probe into the Mumbai attacks that killed 173 people. It was these attacks which India blames on Pakistan-based groups that hardened India's stance against Pakistan. In fact, the arrest last month by Indian security forces of the alleged coordinator of the 2008 attacks and Lashkar-e-Taiba (LeT) operative Syed Zabiuddin Ansari alias Abu Jundal cast its shadow over the talks. On the positive side, both countries remained true to their 18-month resolve not to display rancor toward each other in public. Both sides refrained from speaking about the deliberations except to say that another meeting between the foreign secretaries will set the tone for the ministerial meeting in Islamabad in September. Fortunately, Pakistan does not think Jundal's “confession” about the involvement of Pakistani state agencies in the Mumbai attacks will affect bilateral ties in other areas, especially trade, on which both sides have recently made considerable progress. In fact, there is a need to strengthen the existing confidence-building measures for streamlining the arrangements to facilitate travel and trade across the Line of Control in Kashmir. Both sides should recognize the importance of greater people-to-people contacts and friendly exchanges in building a relationship of trust and friendship between the two countries. The two-day meeting was told that the text of a revised bilateral visa agreement has already been finalized. It should be signed as early as possible. Pakistan should realize that Kashmir, while an irritant, need not stand in the way of meaningful steps to improve relations with India and reduce tension to the benefit of the people of both countries. Last year Pakistan offered most-favored nation trading status to India (reciprocating India's 1996 offer). Restrictions on traded goods, notably by road, are being eliminated, with potentially huge benefits. Road transport is only one-third of the cost of shipping goods to Pakistan by sea, via Dubai, as is the case now, which gives some idea of what each side is losing because of unwarranted hostility. There are also huge amounts of money and precious resources now spent on defense which can be diverted to social welfare and economic development.