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While admitting that there is still a long way to go before India-Pakistan relationship can be termed excellent, government sources on Wednesday expressed happiness over the progress made in the ties between the two Asian neighbours.
Ever since the Saarc Summit in Thimphu, one round of high-level discussions has already taken place and it is clear that the talks are on the right track, sources said.
"Pakistan is already talking about giving India the Most Favoured Nation (MFN) status, there is talk of increasing trade across the LoC and of creating proper banking settlement services," sources said.
Among a series of confidence building measures is also the matter of visa liberalisation to make it easier for people to travel between the two nations.
However, when Prime Minister Manmohan Singh meets his Pakistani counterpart Gilani at the Saarc Summit in Maldives, they will discuss the broader issues on further cementing the ties, taking stock of what the discussion process has delivered and if there is anything more that needs to be done.
On the issue of trade between Delhi and Islamabad, sources said that both sides want to move ahead with better ties as the move would be in their mutual interest.
With the business community in both the countries pushing for it positively and even the political establishment not showing much resistance to the proposal, trade between the two nations is likely to get better, sources said.