Islamabad:
Nirupama Rao and Salman Bashir, the foreign secretaries of India and Pakistan, looked visibly more relaxed after their meeting on Thursday than they did in February this year. As a first sign that things had gone off better than expected, they held a joint press conference, the first since 26/11.
Bashir said he felt "much more optimistic" about a good outcome at the talks.
At their meeting in the morning, the two sides reportedly exchanged proposals on terrorism, Kashmir and humanitarian issues. These will now be discussed by the political leadership.
Sources have told NDTV that the possibility of sharing intelligence was discussed and India stressed that Pakistan must stop Hafiz Saeed from making public speeches, even if they can't arrest him.
Overall, Indian officials felt Islamabad was more receptive to India's concerns on terror, though they did raise their concerns on Balochistan.
India also proposed more cross LOC trade and a joint commission to look at the issue of prisoners, proposals described by officials as "interim doables."
For New Delhi, this is a delicate moment. Another terror attack could unravel everything. In fact, as these talks took place, the Home Ministry issued a fresh all-India alert that Pakistan-based terrorists might strike at public places in a bid to derail dialogue between the two countries.
At the press conference Rao said on a positive, but firm note, "we believe the Pakistan Prime Minister's commitment that he won't allow Pakistan territory to be used for terror activities. We must deny terrorist elements any attempt to derail good relations."
Asked how that goodwill would be insulated from 26/11 type incidents, she said, "That will be the subject of ongoing discussion. Strengthening our dialogue through such talks. Our Home Minister will talk to his counterpart. So that will be another opportunity."
Home Minister P Chidambaram is scheduled to visit Pakistan tomorrow to attend a meeting of SAARC Interior Ministers and will also hold a meeting with his Pakistani counterpart, Rehman Malik, on the sidelines.
All eyes are now on when the foreign ministers of the two countries meet on July 15 in Islamabad. That will be the next big political step in the always complicated Indo-Pak relationship.
While matters were set on course for that today, Pakistan's foreign secretary Bashir attempted to dispel doubts that his nation's powerful Army and ISI were not on board the process for peace. "The government of Pakistan is one...all state institutions are speaking from the same page," he said.