Foreign ministers from both sides wrapped up the latest round of the four-year-old negotiations between the feuding neighbours, which resumed this week after a hiatus of several months caused by political turmoil in Pakistan.

The talks were the first since a new civilian government took power in Pakistan in March after defeating allies of President Pervez Musharraf in general elections.

"We made a lot of progress in our interaction and we hope to maintain this in the next round of talks which is expected in mid-July," Pakistani foreign minister Shah Mehmood Qureshi said at press conference.

Qureshi said the consular agreement would facilitate the early release of prisoners held in each others' jails after they had been identified. Hundreds of detainees remain in prisons on both sides of the border.

The two sides also agreed to increase the frequency of buses running between the capitals of the Indian and Pakistani sectors of Kashmir, from every two weeks to weekly, a joint statement said.

Qureshi said "talks are progressing in a constructive manner on the issue of Kashmir" but there were no fresh agreements on the scenic region, which is claimed in full by both sides.

"We still have to make a lot of progress to resolve this core issue in accordance with the wishes of Kashmiri people," Qureshi said.

Indian Foreign Minister Pranab Mukherjee, speaking at the same press conference, said there were "still many difficulties and we have to cover a long distance".

India and Pakistan launched the peace process in 2004 in an attempt to end six decades of hostilities since independence from Britain. Wednesday's meeting was the conclusion of the fourth round of talks.

The peace process has produced a handful of confidence-building measures since 2004, including air and bus links between the two countries, cultural and sporting exchanges, and safeguards against nuclear accidents.

There has been little progress on Kashmir, however. The Indian part of Kashmir has been rocked by an Islamist insurgency since 1989. New Delhi accuses Islamabad of supporting the rebellion -- a charge Pakistan denies.

Qureshi, a member of the party of slain former premier Benazir Bhutto, said a joint anti-terrorism panel would meet before the next talks to "finalise ways to tackle the menace of terrorism."

The Indian minister also called on President Pervez Musharraf and Prime Minister Yousuf Raza Gilani on Wednesday.

The previous day he met the leaders of the new coalition -- Asif Ali Zardari, the widower of Bhutto, and former premier Nawaz Sharif.

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