They agreed that more efforts were required for the solution of Jammu and Kashmir and issues related to peace and security that will form the basis of talks between the secretaries at the concluding session on Tuesday.
They however, noted that satisfactory movement had been made in "some areas, especially in the realm of confidence building" but did not identify those specifically.
However, the Foreign Office spokesman found the attitude of the Indian delegation, led by External Affairs Secretary Shyam Saran, very "upbeat and upfront" on Kashmir and the impression Pakistan gained was that they (New Delhi) wanted the two countries to "address the trust-deficit" on problems facing them. And Kashmir question was among those issues, he added.
Masood Khan stressed that Islamabad believed in solution of the old disputes, including that of Kashmir, adding that a peace and security environment in South Asia could generate a new culture of co-operation in economic and cultural affairs.
He said the secretaries also discussed the reopening of consulates in Karachi and Mumbai and the exchange of prisoners in custody, reviewed progress on proposals for arresting drug smuggling, maritime issues and rail and road links in the north and south.
Before sitting for the formal discussions, the spokesman said, the host, Foreign Secretary Riaz Khokhar, condoled with the Indian delegation over the recent death of former Indian Prime Minister, Narsimha Rao and last week's devastation caused by earthquakes and resulting tidal waves in Southern India.
When they resume their overnight discussions on Tuesday, the two delegations will address themselves to the questions of Jammu and Kashmir and finalise a calendar for the second round of talks.
They will also work on a report to be taken up by the foreign ministers of Pakistan and India now probably on the sidelines of the Saarc Summit at Dhaka if not before. The top leaders of the two countries as the spokesman said last week would also have a separate meeting and review the current talks.
The statement read out at the start of Monday's briefing said:
"The first round of the Foreign Secretary level talks today was held in a cordial and constructive atmosphere.
"At the outset, Riaz Khokhar, Foreign Secretary of Pakistan conveyed sympathy and condolences of the Government of Pakistan to the Government and people of India over the massive destruction in Southern India by earthquake and tidal waves. He offered Pakistan's assistance for relief and rescue. Khokhar also conveyed condolences over the demise of the former Prime Minister of India Narsimha Rao, Shyam Saran, the Foreign Secretary of India, thanked the Government and people of Pakistan for these expressions of support and condolence.
"The two Foreign Secretaries assessed the first round of composite dialogue completed in September 2004, and the meetings held since then. Both sides emphasised on the need to ensure continuity of the dialogue and confidence building process. In this context, they underlined the importance of the meetings between the leadership of the two countries, especially between President Musharraf and Prime Minister Manmohan Singh and Prime Minister Shaukat Aziz and Prime Minister Manmohan Singh. It was also noted that while in some areas, especially in the realm of confidence building, forward movement had been satisfactory, in others, such as Jammu and Kashmir and peace and security, more efforts were required to be made to find solutions.
Riaz Khokhar and Shyam Saran had in-depth discussions on peace and security. In this regard proposals for elaborating and implementing CBMs in both nuclear and conventional fields were discussed. Both sides said that these proposals would be studied, analysed and sifted before they could be turned into mutually agreed CBMs.
"The two sides also reviewed progress made during meetings on illicit narcotics, maritime issues, Sir Creek, Khokhrapar-Monabao rail link, and Srinagar-Muzaffarabad bus service. They also exchanged views on the Baglihar Dam issue, problems of fishermen detained in each country, opening of consulates in Karachi and Mumbai, and prisoners.
"The two foreign secretaries will take up the issue of the Jammu and Kashmir in their meeting tomorrow.
"The Indian foreign Secretary will call on Khurshid Kasuri, Foreign Minister of Pakistan, Tuesday afternoon."