There appears to be some movement toward a thaw in the often frosty relations between India and Pakistan. Sujatha Singh, the newly appointed secretary of India's External Affairs Ministry, has hinted at “picking up the threads” of dialogue with Pakistan. This follows Pakistan Prime Minister Nawaz Sharif's repeated calls for a rapprochement with New Delhi. Sharif had expressed a wish to normalize relations with India even before he assumed office in June this year. He picked up the theme again in Karachi on Thursday calling for resolving outstanding disputes with India and boosting bilateral trade, investment and business. New Delhi broke off peace talks with Islamabad after gunmen killed 166 people in Mumbai in 2008. The attack, according to India, was carried out by Pakistani militants. Though talks resumed in 2011, relations soured again in January this year after six soldiers from both sides were killed in exchanges of fire along Line of Control in the disputed Jammu and Kashmir. Of the Indian soldiers who were killed, two were mutilated, according to India who also alleged that one may have been beheaded. This added to the frigidity that has crept into relations between the two South Asian neighbors. The situation has remained unchanged since then, though free from violent incidents on the border. One factor encouraging hopes of a change for the better is the election of a new civilian government led by Nawaz Sharif in Pakistan. When Sharif was last in office, in 1999, he achieved a breakthrough in relations with India. But this alone will not lead to a lessening of tensions. While hinting at “picking up the threads” of dialogue with Pakistan, Sujatha Singh on Thursday cautioned that resuming negotiations presupposes an environment “free of terror” and called for visible movement in the trial of those involved in the Mumbai attacks. She was indicating that India's grievances, especially over lack of action against the alleged actors of the terror assault, remain unaddressed. This means the new Pakistani government will have to address India's grievances radically differently. Complicating the situation is the fact that India is going for general elections next year with no guarantee that Manmohan Singh-led UPA government will be returned to power. Against this is the tight grip maintained by Pakistan's armed forces on foreign and defense policy, even though the army has not formally run the country since the ignominious departure of military ruler Pervez Musharraf five years ago. We all know how Musharraf, as the army chief, derailed Sharif's earlier India-Pakistan peace deal by secretly invading Kargil, part of Indian-controlled Kashmir. So whatever the political complexion of the civilian government in Pakistan, the army wields veto power over policy toward India, especially Kashmir, and Afghanistan. Kashmir, of course, is the bone of contention between India and Pakistan. Even if talks resume, Kashmir is likely to figure in the agenda in the first round. But there are other areas that need urgent attention. Both can think of steps such as opening up their market unconditionally to each other's goods and services, encouraging joint ventures in IT, banking and power sector, a liberal visa regime that dismantles existing restrictions such as city-specific short-term visas, promoting tourism and cultural and educational exchanges. India, being the stronger power, should take the initiative in breaking the deadlock.