Manmohan Singh meets Pakistani PM Gilani in Bhutan

Thimphu: Manmohan Singh's meeting with Pakistani Prime Minister Yousuf Raza Gilani began with a handshake and lasted for an hour. This is their first meeting in nearly a year, and it took place on the sidelines of the South Asian Association for Regional Cooperation (SAARC) in Bhutan. (Read: When Gilani-Manmohan took a walk together)

Singh and Gilani first met one-on-one and were then joined by their Foreign Ministers.

"They agreed relations between the two countries should be normalized and channels of contact should work effectively," said Nirupama Rao, India's Foreign Secretary. "The PM emphasized various issues that cause concern to India - issues relating to terrorism, rise of infiltration, and slow progress in trials of the 26/11 perpetrators. India is willing to discuss all issues of concern with Pakistan but the issue of terrorism is holding back progress," she added.

India specifically mentioned its concerns about the fact that no action has been taken by Pakistna against Jamat-ud-Dawa chief Hafiz Saeed, who is believed to be one of the masterminds of 26/11. Singh shared with Gilani "deep concern about Hafiz Saeed and the way he is allowed to roam free and engage in communication is not conducive (to the relationship between India and Pakistan)," said Rao.

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The Foreign Ministers and Foreign Secretaries of both countries are to meet soon to "build trust and confidence in the relationship and pave the way for substantive dialogue on all issues of mutual interest," said Rao.

"I don't think either side was expecting such a positive turn to the dialogue," said Pakistan's Foreign Minister Shah Mehmood Qureshi.

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Gilani assured Singh that "Pakistan is serious about prosecuting perpetrators of 26/11 attacks and an effort is being made to bring the trial to a speedy conclusion." Gilani also said that he will not allow Pakistan territory to be used for terrorist activities directed against India.

Singh and Gilani met last year at Sharm-al-Sheikh in Egypt.  The joint statement issued there created a political crisis for Manmohan Singh at home, with the Opposition accusing him of having compromised India's stand. (Read: What is the Sharm-al-Sheikh pact?)

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The language allowed Pakistan to claim that it had won two major concessions: that future talks would not depend on Pakistan's progress against terrorists who target India, and that India had agreed to consider Pakistan's allegations of inciting the unrest in the Pakistani province of Balochistan.

This time around, therefore, the Indian contingent has stressed that there is no question of delinking a discussion on terrorism from any talks between the two countries. Earlier this week, though, Pakistani officials said they wanted the Sharm-al- Sheikh joint statement to form the starting point for talks.

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Also read: Singh, Gilani meeting is good for region: US