The issue involves trade across what is called the Line of Control which divides the Himalayan Kashmir province, over which the two countries have fought two wars in the past.

A statement issued after Monday's meeting of the joint working group on Cross-LoC Confidence Building Measures did not say when trade routes would be opened, Pakistan's Daily Times reported.

The Times of India, quoting sources, said negotiators agreed on a resumption of truck service between Srinagar on the Indian side and Muzaffarabad on the Pakistani side starting Oct 1.

Indian Prime Minister Manmohan Singh and Pakistani President Asif Ali Zardari, who are scheduled to meet on the sidelines of the U.N. General Assembly session in New York this week, were expected to decide on a framework for the trade.

Cross-LoC trade has been supported by India since the opening of the Srinagar-Muzaffarabad bus service in April 2005, the Times of India reported. But the issue has remained unresolved because the two sides have not been able to agree on items that can traded through the region.