WASHINGTON, July 11: The United States on Friday welcomed an understanding between India and Pakistan to hold the Saarc summit in Islamabad and hoped that it would lead to a dialogue between the two nuclear rivals.

A state department official also told reporters in Washington that the decision to restart the bus service between Lahore and New Delhi was a good omen.

“All these things are linked together — in a way, connected,” the official said.

The resumption of the Saarc summit process, the official hoped, would “lead to dialogue and cooperation in the South Asian region.”

The official said that the United States “has a continuing interest in an increased engagement between Pakistan and India.”

Such an engagement, he said, would enable them to “resolve their matters in an environment of dialogue and peace.”

“Also of interest is the report on the resumption of the Lahore-New Delhi bus service.”

The official noted that both the countries “have taken a number of steps” for reducing tensions.

“We hope that (such contacts) would lead to the promotion of bilateral relations and further strengthen contacts in South Asia,” he said.

Such contacts, he said, will “help promote peace and stability in the larger good and welfare of the region.”