India and Pakistan Sunday agreed to take their talks on Kashmir forward, but decided not to set a deadline to resolving the complex issue that has led to two bitter wars between the countries, Indo-Asian News Service reported.

Indian Prime Minister Manmohan Singh held discussions with Pakistan President Pervez Musharraf on all bilateral issues, including the Kashmir issue. The talks were held on the second day of Musharraf's three-day visit to India during which he also watched the final match of India-Pakistan cricket series that Pakistan won Sunday.

"Prime Minister said that the redrawing of borders is something not possible, but there could be greater traffic of people, cross- border trade and across-the-spectrum contacts between the two countries," India Foreign Secretary Shyam Saran said after the summit-level talks.

Alluding to Pakistan's assurance in January 2004 not to allow its soil to be used for terrorist activities against India, Manmohan Singh said that it was this assurance that opened up "new opportunities for cooperation."

Musharraf responded by saying that the two counties have made a lot of progress on the Kashmir issue and discussions should continue on it. While saying the two countries need not impose a deadline, he stressed on the importance of resolving all outstanding issues.

Both leaders agreed to enhance trade and business by reviving a joint commission that has ceased functioning since the 1980s. Both sides also agreed to further intensify exchanges of the joint business council set up by the private sectors of both countries.