Pakistani Prime Minister Yousuf Raza Gilani, left, shakes hands with Indian Prime Minister Manmohan Singh on the sidelines of the SAARC summit in Addu. - AP Photo

ADDU, Maldives: Indian Prime Minister Manmohan Singh said Thursday that India and rival Pakistan needed to stop wasting time trading barbs and open a new chapter in their relationship.

Singh's comments came amid signs of warming ties between the two nuclear armed nations, which have fought three wars since gaining independence from Britain.

The two nations decided earlier this year to restart wide-ranging peace talks. Last month, Pakistan quickly returned an Indian helicopter and its crew that had strayed across the tense border, and last week Pakistan announced it would normalize trade with India.

Singh and Pakistani Prime Minister Yousuf Raza Gilani met for about an hour Thursday on the sidelines of a South Asia regional summit to further discuss how to ease tensions between their nations.

Singh praised Gilani as a man of peace and said the two neighbors needed to understand that their destinies are interlinked.

''The time has come to write a new chapter in the history of our relationship,'' he said, standing beside Gilani.

In their meeting, Singh and Gilani discussed the dicey issues of border disagreements, terrorism, trade and the divided territory of Kashmir, Gilani said.

Saying the two sides had a ''unique opportunity,'' Singh said he expected the next round of talks to be productive and bring the countries closer than they have ever been. No dates for the new talks were announced.

The two sides agreed to resume the talks earlier this year after their foreign secretaries met on the sidelines of another international summit.

US government officials also have been encouraging talks among India, Pakistan and Afghanistan as a way to bring stability to the troubled region.

But there is little expectation of a quick deal, which would require significant compromise by both sides and could threaten the stability of Gilani's government.

Pakistani Foreign Minister Hina Rabbani Khar reflected that caution, saying Wednesday, ''We have many, many long miles to move ahead still.''

The SAARC grouping is holding 17th meeting in the Indian Ocean archipelago of Maldives. The group comprises India, Pakistan, Afghanistan, Bangladesh, Sri Lanka, Nepal, Bhutan and Maldives.

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