Pakistan and India come a step closer as both countries agreed that terrorism is the dominant issue in the region, but still their future relations depends on the way they remove the trust deficit that exist between them for long, experts said Saturday.

The conference of the South Asian Association for Regional Cooperation (SAARC) held in Pakistan's capital Islamabad issued a joint declaration on Saturday revealing that the member countries, especially Pakistan and India, agreed over cooperation against terrorism.

In the joint declaration the South Asian countries vowed that none of the member country's soil should be used against other state.

A day earlier of this meeting Pakistani interior minister Rehman Malik and his Indian counterpart held a one-on-one meeting. After the meeting Malik termed it as a positive beginning.

The visiting Indian Home Minister Palaniappan Chidambaram also praised Pakistan's steps against terrorism and lauded Malik's efforts for peace.

After Thursday meeting between the foreign secretaries of the two countries in Islamabad both sides seemed positive. In the meeting both sides agreed to insulate peace process of terrorism.

"After this engagement, I feel much more optimistic about a good outcome at the ministerial level and good prospects for the two countries in terms of our relationship," Pakistani Foreign Secretary Salman Bashir told media.

However, it was not considered as important as purpose of the meeting was to set agenda for the forthcoming meeting between the foreign ministers of the two countries.

Indian and Pakistani foreign ministers S.M. Krishna and Shah Mehmood Qureshi are scheduled to meet in Islamabad on July 15, the third major contact in six months between both countries that have fought three wars in 60 years.

Seasoned defence analyst Talat Masood told Xinhua that he saw a positive change in India's role and posture. "India wants peace in the region for its economic development and a global status. That is not possible if it will have rivalries with Pakistan."

Besides, now the whole world realizes Pakistan's sincerity and sacrifices in war against terrorism, observers said.