The draft plans cover issues ranging from improving trade and cultural ties and combatting terrorism and drug trafficking to steps towards resolving the decades-old dispute over Kashmir, a joint statement said.

The proposals will now be submitted to Indian Foreign Minister Natwar Singh and Pakistani Foreign Minister Khurshid Mahmud Kasuri when they meet here today and tomorrow for the first ministerial-level talks on Kashmir in three years.

"The foreign secretaries agreed that the discussions had been productive and had taken place in cordial and constructive atmosphere," said the statement issued at the end of talks here between Indian Foreign Secretary Shyam Saran and his Pakistani counterpart, Riaz Khokhar.

"Several useful ideas and suggestions were made by both sides," it said, referring to meetings in the past few months between bureaucrats from India and Pakistan.

In Saturday's talks, the two sides "discussed the ways of taking the (peace) process forward.

"They would be reporting to the foreign ministers with the recommendation that the Composite Dialogue should be continued with a view to further deepening and broadening the engagement between the two sides," it said.

No details of the proposals were disclosed but during ongoing meetings between the two sides since March -- known as the Composite Dialogue -- both teams have released a number of blueprints for building peace.

India's ideas on the table have included the start of a bus connecting the capitals of the Indian and Pakistani zones of Kashmir, the granting of most favoured nation status by Pakistan to India, the opening of the Wagah border for trade and greater interaction among the business communities.

The mandate for the Khokhar-Saran talks was to finalise the agenda for the dialogue between Singh and Kasuri.

The last foreign secretary-level talks were held in New Delhi on June 27-28 and were followed by a series of meetings between officials in July and August.

Kasuri was due in New Delhi late Saturday for a full schedule during which he was expected to meet opposition leaders, Kashmiri separatists and senior Indian leaders before and after the formal talks.