DHAKA, Nov 12: Prime Minister Shaukat Aziz and his Indian counterpart Manmohan Singh on Saturday discussed the ongoing peace process and the opening of crossing points along the Line of Control to help divided families meet each other in two parts of the quake-stricken Kashmir.

The meeting on the sidelines of the 13th Saarc summit continued for about 50 minutes during which the two sides also discussed ways to make the grouping an effective instrument of cooperation.

After the delegation-level talks, the two prime ministers had a one-to-one meeting that lasted for 30 minutes.

Mr Singh assured Mr Aziz that the remaining two of the five designated points along the LoC would also be made operational shortly.

Mr Aziz said the opening of these points would facilitate exchange of relief goods and enable people to cross over to share their grief and help each other in relief and reconstruction efforts. He thanked his Indian counterpart for the assistance New Delhi had extended for quake victims.

The two leaders reviewed the peace process which is to enter the third round in January 2006. The two countries are to discuss the issues, including Sir Creek, Siachen, arrest of fishermen, etc., in the next round.

Pakistan, said Mr Aziz, desired resolution of the Kashmir dispute in line with the wishes of the Kashmiri people and added that it would help improve ties between the two countries.

He told Mr Singh that Pakistan believed in free trade with India but this was not possible unless there was progress on the Kashmir issue.

Referring to the restricted trade, Prime Minister Aziz told him that some Pakistani traders had complained about non-tariff barriers they had faced in India, to which the Indian premier assured that he would look into the matter.

Talking to reporters later, Mr Aziz said that Pakistan and India were close to signing a protocol on shipping and port services between the two countries.

Pakistan has already proposed Dec 9-10 as dates for negotiations on the protocol.

The premier said that he had raised the issue of proposed Iran-Pakistan-India gas pipeline project and Mr Singh had assured that New Delhi stood by the commitments and understandings reached among the three countries.

Mr Aziz said that Pakistan had condemned the recent bomb attacks in New Delhi as it was opposed to terrorism in all its forms and manifestations.

In reply to a question, he said the All Parties Hurriyat Conference leaders had visited Pakistan and held talks with the Pakistani leadership and they had also been meeting the Indian leadership. He described these contacts as good, saying it would help find ways to resolve the dispute.

He said they had also discussed the request by Afghanistan and China to be associated with Saarc. He said Pakistan fully supported both the requests as an expanded Saarc would be better for the region.

The requests by Afghanistan and China would come up for discussion when Saarc leaders meet for a retreat on the second day of the summit and the prime minister hoped that there would be some decision on it.

The premier said he and his Indian counterpart had agreed that meetings of Saarc needed to be result-oriented as mere statements would not do any good. He stressed that conflict resolution in South Asia would help promote regional cooperation.

Foreign Minister Khurshid M. Kasuri, Information Minister Sheikh Rashid Ahmed, Shipp-ing and Port Minister Babar Khan Ghouri also took part in the delegation-level talks.

INDIAN VIEW: Indian Foreign Secretary Shyam Saran told reporters after the meeting that it was important that incidents such as the bomb attacks in New Delhi did not divert attention from the peace process.