Prime Minister Manmohan Singh on Sunday said relationship with Pakistan was improving but was cautious, saying it was prone to accidents.

"Our relations with Pakistan are improving. Recently there have been home secretary-level talks and other talks. It is a hopeful beginning. But I can say, it is prone to accidents," he told journalists after presenting the UPA-II's report on completion of two years.

He was responding when asked about his commitment to improving relations with Pakistan when he took over. On Kashmir, Singh said there was peace in the state.

To a question on corruption, the Prime Minister acknowledged that a "few aberrations" had taken place but said there was "no question of being demoralised" and the government was "determined to fight".

About his completing seven years as prime minister, he said, "I feel humbled that the party has reposed faith in me. We look to the future with hope and confidence. I am at the service of the people. I am overwhelmed."

Asked when he would undertake the Cabinet reshuffle, Singh replied, "You will come to know when it takes place."