ISLAMABAD, Jan 12: Indian External Affairs Minister Pranab Mukherjee arrives here on Saturday afternoon on a two-day official visit amid optimism that it may break the ice on the Siachen issue which could ultimately pave the way for a settlement of the longstanding Kashmir dispute.

Mr Mukherjee will be leading a seven-member delegation including foreign secretary Shivshankar Menon who has formerly served as High Commissioner to Pakistan and has been actively involved in the ongoing peace process.

On arrival at the Chaklala Airbase aboard his special aircraft Mr Mukherjee will be received by foreign secretary Riaz Mohammad Khan and Pakistan’s High Commissioner to India Shahid Malik who is here for the talks.

His official engagements will start with a call on President Gen Pervez Musharraf and Prime Minister Shaukat Aziz. In the evening he will hold formal talks with his counterpart foreign minister Khurshid Kasuri at the Foreign Office that will be followed by a joint press conference.

Although Mr Mukherjee’s visit is being projected as a Saarc-related visit, as he will be extending an invitation for the 14th Saarc Summit to the president, it is widely seen as an attempt to normalise bilateral relations and to prepare the ground for Indian Prime Minister’s trip to Pakistan.

A 24-member Indian media team arrived here on the eve of Mr Mukherjee’s visit, signalling the high importance being attached to it. A senior Indian journalist here to cover the visit believed it would be “very positive” and compared it to the optimism generated during the January 2004 visit of Indian Prime Minister Atal Behari Vajpayee here that marked the revival of Indo-Pakistan composite dialogue.

Another view was that it would be more than just positive sentiments. However, on the eve of the talks the Pakistani side expressed guarded optimism.

There are strong indications from the Indian side that Mr Mukherjee would indicate dates for the Indian prime minister’s visit to Pakistan. While a joint statement is on the cards, officials say the four agreements that were expected to be signed during the visit would not be initialled because the Indian side could not complete its internal processes.

Prior to the delegation-level talks the two foreign ministers are likely to have a one-on-one session. During the formal talks the two sides will review the third round of the composite dialogue and finalise the schedule for the next round that is likely to begin in March.

According to informed sources, on the Siachen issue there has been much back and forth on the backchannel and it will be high on the agenda when the two foreign ministers meet on Saturday. While no major breakthrough is expected during the visit, the two sides are expected to discuss proposals and further narrow down the differences on this key issue, sources said.

Various ideas that could lead to a solution of the Kashmir dispute are also expected to be discussed and debated at length as would be the issue of Sir Creek. Pakistan will specifically raise the issue of prisoners and reopening of its consulates in Mumbai and Karachi.

While all aspects of bilateral relations would be discussed during the talks the effort will be to focus on dispute resolution and building on convergences, officials here said.

Mr Kasuri last met Mr Mukherjee in New Delhi in November 2006 when the latter hosted lunch for him at the Hyderabad House during the former’s private visit to India. On return Mr Kasuri described his first interaction with his new Indian counterpart as a “good beginning”.

It is learnt that Mr Mukherjee will also meet some political leaders including members of the opposition here on Sunday before his departure for New Delhi in the afternoon.