India and Pakistan yesterday concluded talks on demarcating the maritime boundary between the western Indian state of Gujarat and Pakistan's Sindh province and agreed to continue discussions. The talks are the latest in a series of negotiations between the rival neighbours, which are working to improve ties after a near war in 2002.

The two delegations had a "detailed and useful exchange of views" on Sir Creek which runs between Gujarat and Sindh, a joint statement said after two days of talks in New Delhi.

"It was agreed that early resolution of the issue would be in the interest of both countries. The two sides agreed to continue the discussions," it said.

India says the boundary lies in the middle of the 60-kilometre (40-mile) estuary while Pakistan says it is on the eastern bank. The area is considered economically strategic as it is believed to hold abundant deposits of oil and gas.

A similar statement pledging to talk again was issued Friday after separate talks between India and Pakistan over the Siachen glacier in Kashmir, which is considered the world's highest-elevation battlefield.

More discussions are scheduled in August on trade and cracking down on drug trafficking.

The talks are expected to pave the way for a meeting between the Indian and Pakistani foreign ministers in early September.

India and Pakistan, which have fought two of their three wars over Kashmir since 1947, sent a million troops to their borders after the Indian parliament was attacked in December 2001 by Islamic rebels New Delhi said were sponsored by Islamabad. Pakistan denied the charge.