India and Pakistan on Sunday agreed to set up a committee to accelerate bilateral trade and launch rail link between Munnabao in Rajasthan and Khokrapar in Sindh in December.
The decisions were taken at the talks between President Pervez Musharraf and Prime Minister Manmohan Singh that went on for two hours.
The two sides also decided to increase the frequency of the Srinagar-Muzaffarabad bus services, official sources said.
During the talks the PM said, "We want to promote trade, and any problem that are coming in the way we certainly want to resolve them."
During the talks, the Pakistani side complained that it has not benefitted from the Most Favoured Nation status granted to it by New Delhi, as the Indian tariff and non-tariff barriers are not helping in enhancing trade links.