But a deal with India on the disputed territory may be tough to sell at home
Speculation is mounting in Islamabad that Pakistan could be on the verge of making big concessions to reach a deal with India on the thorny issue of Kashmir.
The talk began in the aftermath of the recent meeting between Pakistani President Pervez Musharraf and Indian Prime Minister Manmohan Singh on the sidelines of the United Nations General Assembly in New York.
Without giving details of their discussion, the two leaders termed the meeting 'historic' and expressed great faith in each other's sincerity in solving various bilateral issues, the most intractable of which is the fate of Kashmir.
Once back home, General Musharraf declared that the next few months would be extremely important for a possible breakthrough on major issues.
A foreign office spokesman went further, saying that both countries needed to go beyond their 'stated positions' on the question of Kashmir.
Pakistan's political classes have welcomed the prospects of a settlement but fear the country may end up sacrificing its principles on Kashmir.