Among other things, it could offer a number of scholarships and free medical treatment to poor Indian patients.
There were warm handshakes and smiles as Foreign Secretary Shyam Saran and his Pakistani counterpart Riaz Khokhar posed for photographers at the majestic Hyderabad House before the negotiations.
The talks will continue tomorrow when the two sides would discuss the Kashmir issue.
Foreign secretaries of the two nations will meet in May-June to discuss various issues, they agreed.
Menon will present his credentials to President Pervez Musharraf after he returns from his three-nation tour. Musharraf is scheduled to reach Islamabad on Saturday from Rabat.
'We will have a joint review of the entire gamut of the composite dialogue process and prepare the agenda' for the meeting between the foreign ministers, Khokar said.
Foreign Secretary Riaz Khokhar sprung a surprise saying there was no need for third party mediation in Kashmir.
Former Foreign Secretary Riaz Khokhar is tipped to replace Sherry Rehman as Pakistan's ambassador to the United States, according to a media report on Wednesday.
"India is hopping mad. Please get out of the places you have occupied," was the American message to Pakistan in the wake of the Kargil War in 1999, Pakistan's then envoy to the US, Riaz Khokhar said in Islamabad on Sunday.
Pakistan made an "error" in ignoring terrorist sanctuaries in its tribal areas, a senior Pakistani diplomat said.
'The Modi government knows that much cannot be expected of Pakistan till the Kulbhushan Jadhav issue is resolved,' says Rajeev Sharma.
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