In a fresh twist to the decades-old Kashmir dispute, the "president" of Pakistan-occupied Kashmir has said that talks can be held with India on any proposal for an independent state of Jammu and Kashmir.

In a significant climbdown, the Pakistani Taliban on Wednesday said it is ready for a ceasefire and peace talks if the government stops arresting its fighters and killing them in fake police encounters.

Pakistan on Thursday said India's stand that the Simla Agreement of 1972 supersedes earlier United Nations resolutions on Kashmir is not legally tenable even as it sought "serious negotiations" on all outstanding disputes.

As the Pakistan government and the outlawed Taliban prepare for peace talks, Prime Minister Nawaz Sharif on Monday said he wants to overcome both terrorism within the country and outstanding issues with India through dialogue as peace is vital for reviving the country's economy.