Pakistan's 'bus diplomacy' with India is expected to pave the way for a lifting of economic sanctions and a visit by US President Bill Clinton to South Asia this year.
The US leader's planned trip was cancelled last year when the two countries conducted tit-for-tat nuclear tests.
Since then, the US has exerted huge pressure on both countries to end their hostilities.
But now tensions have dramatically eased following Indian leader Atal Behari Vajpayee's high-profile arrival in Pakistan aboard a new cross-border bus service, the presidential trip is likely to be back on the agenda.
The 'bus diplomacy' - involving the first visit by an Indian premier in a decade - resulted in the Lahore Declaration's eight confidence-building measures agreed with Prime Minister Nawaz Sharif.
Both prime ministers promised 'immediate steps' to reduce the risk of accidental nuclear conflict.
