Karachi/New Delhi, Feb 26 (IANS) Prime Minister Yousuf Raza Gilani has described the just-concluded talks between the foreign secretaries of Pakistan and India as a positive development, saying dialogue was the only solution to the issues confronting the region.

'Pakistan wants to resolve all disputed issues with India through talks because it is the only option for the two countries,' Online news agency quoted Gilani as saying in Karachi Friday.

The prime minister reiterated that Pakistan wanted congenial relations with its neighbours on the basis of equality.

India and Pakistan Thursday held their formal dialogue in New Delhi, first since the Mumbai terror attack 14 months ago, but a breakthrough eluded them, with New Delhi making it clear that the time was 'not yet ripe' for resuming composite dialogue till a climate of trust was created over its 'core concern' over terror.

Amid sharply differing agendas, the stalemate persisted despite both sides insisting that these were 'useful, cordial and transparent discussions' on issues of concern to them, with no plan for further talks.

India's Foreign Secretary Nirupama Rao and her Pakistani counterpart Salman Bashir, who met first by themselves for one and a half hours and then with their delegations at Hyderabad House, indicated they would remain in touch, though no dates were fixed.

Indian External Affairs Minister S.M. Krishna reiterated New Delhi's stance Friday, describing the foreign secretary-level talks as 'an encouraging step'. But he said the future of the bilateral dialogue with Pakistan will depend on Islamabad's response to India's 'core concerns on terrorism', which remain undiluted.

'On Pakistan's view that the composite dialogue between the two countries should be restored, we responded that the resumption of such a process would have to await the restoration of greater trust and confidence,' Krishna told the Lok Sabha.