In the latest sign of a thaw in relations between the nuclear-armed rivals, Pakistan has taken further steps toward normal trade and travel ties with India on Tuesday, agreeing to open more commerce with its larger neighbor by February.

At a bilateral meeting in Delhi, the two countries' trade secretaries agreed Pakistan will notify India by February of a negative list of items that it cannot trade with its neighbor, minutes of the meeting showed.

Indo-Pak

Indo-Pak Trad

There has been further progress, India's trade secretary Rahul Khullar said at a briefing after the meeting with his Pakistani counterpart.

Replacing the current limited positive list of items that can be traded with a short list of products that cannot be traded, is a step towards regular trade ties. Earlier this month, Pakistan promised to give India a most favoured nation trade status, a move that would end heavy restrictions on what India is allowed to export across the border.

India and Pakistan also agreed to push for easing of visa rules that severely restrict business travel across the heavily armed border. They will look at the feasibility of electricity trading and will open a second road trading post by February.

Pakistan's Trade Secretary Zafar Mehmood said the negative list would be drawn up within a couple of months and said an expert panel would decide in January on allowing the trade of oil products.