Pakistani Prime Minister Yousuf Raza Gilani and his Indian counterpart Manmohan Singh ordered senior diplomats to meet as often as needed to improve relations between the two countries.
The two met on the sidelines of a Non-Aligned Movement summit in the Egyptian resort of Sharm el-Sheikh.
A statement issued after the talks said the two prime ministers had a cordial and constructive meeting considering a range of bilateral relations with a view to charting the way forward in India-Pakistan relations.
Both leaders agreed that terrorism is the main threat to both countries and they both affirmed their resolve to fight terrorism and to co-operate with each other to this end.
Mr Singh again reiterated the need to bring the perpetrators of the Mumbai attacks to justice and Mr Gilani assured him that Pakistan will do everything in its power in this regard.
He said that Pakistan has provided an updated status dossier on the investigations of the Mumbai attacks and had sought additional information/evidence. Prime Minister Singh said that the dossier is being reviewed.
Both leaders agreed that the two countries will share real time credible and actionable information on any future terrorist threats.
The two men recognised that dialogue is the only way forward.
Prime Minister Singh said that India was ready to discuss all issues with Pakistan, including all outstanding issues.
Prime Minister Singh reiterated India's interest in a stable, democratic Islamic Republic of Pakistan.
Both leaders agreed that the real challenge is development and the elimination of poverty.
Both agreed to work to create an atmosphere of mutual trust and confidence.
The statement concluded that both leaders reaffirmed their intention to promote regional co-operation.
