Kanpur: Asserting India wanted cordial relations with its neighbours; Prime Minister Atal Bihari Vajpayee tonight (May 1, 2004) said that Pakistan was ready to talk on all outstanding issues, including Kashmir.

Pakistan was earlier adamant on a dialogue on Kashmir but "we pressed them to talk on all issues", Vajpayee told in an election rally.

Islamabad was now ready to talk on all pending issues, he said.

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"Now terror activities from Pakistani soil have stopped. We are watching the development seriously," the Prime Minister said adding India wanted cordial relations with its neighbours.

"Pakistan was importing wheat from Australia but we sent a message to take it from India. They agreed and we exported wheat to them," he said.

Vajpayee said rail and air links between the two countries had been restored and relations between the two nations were going in right direction.