ISLAMABAD, April 22: Pakistan and India have agreed to hold talks on trans Kashmir trade and establishing new links in another major step towards reviving old Kashmiri links and facilitating greater interaction between people on both sides of the Line of Control (LoC).

The two-day talks to be held in New Delhi on May 2-3 will have an important three-point agenda, informed sources told Dawn on Saturday. The two sides will work out modalities for starting a truck service for trade on the Muzzafarabad-Srinagar route, launching the Rawalakot-Poonch bus service and setting up four meeting points at designated areas along the LoC, two on each side of the divide.

These would be the most significant Kashmir-related CBMs after the launch of Muzaffarabad-Srinagar bus service last April and subsequent agreement on opening five crossing points along the LoC that divides the Himalayan region.

Preparations for the talks are already under way. A high-level inter-ministerial meeting was held here this week to finalise the strategy for the talks.

The effort would be to start the truck and bus service besides establishing the meeting points at designated areas at the earliest possible, sources told this correspondent.

It is believed that it could be possible within this quarter, most likely just ahead of the Indian Premier’s visit to Pakistan.

Syed Ibne Abbas, director-general South Asia Division at the Foreign Ministry will be leading a 10-member delegation for the upcoming talks. The Pakistan team will include representatives from the ministries of commerce, interior and defence besides GHQ and AJK government officials.

A key aspect to be decided in the context of the truck service would be the nature and number of products to be traded. The two sides will discuss a list of proposed items to be imported and exported from both ends. It is learnt that the intra-Kashmir trade will be confined strictly to local products. Initially an agreement on some dozen trade items from each side is expected. These would include fruits, vegetables, handicrafts and Kashmiri shawls.

The decision to start a truck service for trade and the launch of a bus link between Rawalakot and Poonch was taken at the Musharraf-Manmohan summit talks in New Delhi in April 2004.

The proposal of establishing meeting points for day-long interaction between Kashmiris on both sides of LoC was made by India last year.