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Pakistan's "all or nothing" approach was the cause for the stalemate in the ministerial talks in Islamabad.
Sources said while India is very clear that no meaningful engagement can take place in absence of credible action by Pakistan on its core concern of terrorism emanating from Pakistani soil, Islamabad has been insisting on a "time-line road-map" on all issues under the Composite Dialogue.
India has asserted that it does not have any problem in discussing all issues with Pakistan but needed some forward movement on terrorism directed against the country, including action against those involved in 26/11 terror attacks.
However, Pakistan has been insisting that all issues such as Jammu and Kashmir, Sir Creek should be discussed and a roadmap drawn, the sources said, adding, "let's do what the traffic can bear."
"There were no surprises from the India side which wanted graduated steps in improving the relationship... But Pakistan insisted on an all-or-nothing approach...They wanted a grand curtain-raiser on all issues under the Composite Dialogue," the sources said.