UNITED NATIONS, Feb 20: UN Secretary-General Kofi Annan on Thursday appreciated the steady progress being made in dialogue between India and Pakistan and encouraged both sides to stay the course.

In a statement, Mr Annan said he was heartened by the agreement reached at the latest round of talks in Islamabad and the commitment reiterated to discuss and arrive at a peaceful settlement of all bilateral issues, including Jammu and Kashmir, to the satisfaction of both sides and the people concerned.

The UN chief said, "he considers these very positive developments as evidence of the determination of the two countries to settle all outstanding issues and to open a new era of cooperation and peaceful co-existence."