India and Pakistan declared on Wednesday that trade across the Line of Control will begin on October 21 this year while modalities for the opening of the Skardu-Kargil road will be discussed. The decision, coming after the first meeting between the Prime Minister, Dr Manmohan Singh, and Pakistan’s new President, Mr Asif Ali Zardari, envisages cross-LoC trade on the Srinagar-Muzaffarabad and Poonch-Rawalkot roads.

It was also decided to open the Wagah-Attari road link and Khokrapar-Munabao railway route to all permissible items. Both countries will also continue “interaction between Planning Commissions to develop mutually beneficial cooperation, including in the energy sector”.

A joint statement issued on Wednesday by Dr Singh and Mr Zardari after they met on the sidelines of the UN General Assembly, acknowledged that the peace process initiated by both India and Pakistan has been “under strain in recent months”. Terror and ceasefire violations remained high on the agenda, sources said. The one-to-one meet was held at the Millennium Plaza Hotel here.

Hours before the meeting, Mr Zardari tried to play to his domestic gallery by telling Pakistani media that “Kashmir remained the core issue”. But he did not raise the issue of UN resolutions that call for a plebiscite. Prior to the meeting, Mr Zardari hugged an unprepared Dr Singh and hailed the Prime Minister for “changing the face of India.” “You are the leader of modern India,” Mr Zardari said to Dr Singh.