Pakistan Prime Minister Shaukat Aziz met Prime Minister Manmohan Singh in New Delhi on Wednesday.
The meeting will be followed by delegation-level talks and lunch.
Mehbooba Mufti, daughter of Jammu & Kashmir chief minister Mufti Mohammad Sayeed, and Omar Abdullah are expected to attend the luncheon meeting.
Earlier, speaking at an interactive session with editors, the Pakistan premier said normalisation of relations between the two countries would depend on progress on the Kashmir issue.
He said the Hurriyat Conference would play a major role in deciding the future of Kashmir.
Aziz arrived on a two-day visit along with his wife on Tuesday. The prime minister welcomed Aziz with a phone call. Singh told Aziz, "Who could say some 20 years ago that the Berlin Wall would be a thing of the past."
"We can set in motion a similar process in this subcontinent. I earnestly and sincerely will work to that end," he added.