Pakistan has zeroed in on a property in Mumbai for setting up its consulate there, raising hopes of early reopening of missions by the two countries in Mumbai and Karachi on reciprocal basis.
Negotiations have been initiated for taking the bungalow at Kemps Corner on rent, sources said in New Delhi.
The bungalow has been selected among three properties identified by Maharashtra government.
Islamabad intends to take the bungalow on rent as a temporary measure and for the long term, it is trying to purchase a plot of land on Walkeshwar Road to build its Consulate building on permanent basis.
The two countries were to reopen their consulates in Karachi and Mumbai by January one this year but it could not fructify as Pakistan had problems in finding a place to set up its mission.
It had earlier identified a bungalow but it ran into trouble after neighbours raised objection and took the matter to court.
Subsequently in January this year, the External Affairs Ministry sought the Maharashtra government's help in identifying the place.