NEW DELHI, Jan 9: Indian Prime Minister Atal Behari Vajpayee on Friday hailed "positive winds" in relations with Pakistan after the rivals agreed to resume dialogue that was stalled for two and a half years.

"Sisters and brothers, as you are aware, positive winds are blowing in India's external environment," Prime Minister Vajpayee told a conference of Indian expatriates.

He added: "The conclusion of a South Asian Free Trade Agreement will herald a new era of trade and economic co- operation in this region." free trade pact was sealed at a seven-nation South Asian summit that closed in Islamabad on Tuesday.

On the sidelines of the 12th Saarc Summit, India and Pakistan announced that they would restart dialogue from February. "India-Pakistan relations show new signs of promise with a categorical assurance from Pakistan that it will not permit any territory under its control to be used by terrorists," Foreign Minister Yashwant Sinha told participants of the meeting.-AFP