Thursday's talks were the third high-level meeting between the two Asian neighbors since last year's Mumbai attacks that derailed any rapprochement.India said the Mumbai assault was carried out by Pakistani militants who must have had help from Pakistani security agents. Pakistan has denied any involvement by state agencies and says it will prosecute militants suspected of involvement. "Both prime ministers recognized that dialogue is the only way forward," said the statement after Pakistan Prime Minister Yusuf Raza Gilani met his Indian counterpart Prime Minister Manmohan Singh in the Egyptian resort of Sharm el-Sheik.
"Action on terrorism should not be linked to the composite dialogue process," the statement said after the meeting on the sidelines of a summit of the Non-Aligned Movement.
The statement described talks as "cordial and constructive" and said the two premiers covered the whole range of bilateral relations "with a view to charting the way forward" in ties.
Pakistan is keen to revive the five-year-old "composite dialogue," a process to cover all disputes between the two.
"Prime Minister Singh said that India was ready to discuss all issues with Pakistan, including all outstanding issues," the statement said, adding that both countries agreed to cooperate in fighting terrorism.
