Pakistan and India agreed Wednesday to start the first-ever bus service between the capitals of divided Kashmir, which will re-connect families separated for decades and raises hope that the two countries might one day find permament peace.

The service will start on April 7, a concrete result of more than a year of peace talks, announced by the two sides following talks between their foreign ministers in Islamabad.

"We have come a long way over the past year or so. I'm convinced that co-operation between our two countries is not just a desire and an objective, it is in today's context an imperative," said Indian External Affairs Minister Natwar Singh. "The people of both countries clearly desire it."

The buses will travel along a rutted mountain road in the folds of the Himalayas linking Muzzafarabad on the Pakistani side with Srinigar on the Indian side.

Pakistani Foreign Minister Khursheed Kasuri said on Wednesday that travel would be granted through an "entry permit system" - rather than a passport - once the identities of travellers are verified.

"I never imagined the two countries could reach such a decision... I will travel on the first available bus to Srinagar," said Khalid Dar, a resident in the Pakistan-controlled region.

The bus deal has been in the works for months, and its consummation was the most tangible success from more than 14 months of peace talks that have seemed stalled at times.

Singh's visit this week is the first bilateral trip by an Indian foreign minister to Pakistan since 1989 and is part of a dialogue to end 57 years of disputes between the South Asian neighbours.

India and Pakistan have fought three wars since gaining indepedence from Britain in 1947. Kashmir has been at the root of two of them.

More than 66,000 people have died since an Islamic insurgency began about 15 years ago.

Also on the agenda in the Islamabad talks were discussions about a US$3 billion, 2,575-kilometre gas pipeline from Iran which has been delayed for years, mainly because of Indian security concerns over running the pipeline through Pakistani territory.

Source: China Daily