Prime Minister Manmohan Singh and Pakistani President Pervez Musharraf have agreed to implement confidence-building measures and explore "possible options" for a peaceful and negotiated settlement of the Kashmir issue.
Holding their first summit meeting here on Friday, the two leaders reiterated their commitment to continue the bilateral dialogue to restore normalcy and cooperation between the two countries.
Musharraf, who read out a joint agreement, said his deliberations with Singh "augured well for the future of India-Pakistan relations", after the two held an hour-long meeting at the Roosevelt Hotel on the sidelines of the UNGA session.
Singh said it was "a historic day" and "a new beginning" for Indo-Pakistani relations. "I sincerely believe today is a historic day. We have made a new beginning and I feel confident that despite difficulties on the way, I and President Musharraf will together work and succeed in writing a new chapter in the history of our two nations," Singh said.
The two leaders also discussed the possibility of a gas pipeline to India via Pakistan. The agreement noted that the project could "contribute to the welfare and prosperity of the people of both countries and should be considered in the larger context of expanding trade and economic relations between India and Pakistan".