Pakistan's foreign minister has voiced optimism about the future of Indian-Pakistani relations, as the longtime rival countries hold bilateral talks aimed at furthering their peace dialogue.

Hina Rabbani Khar said Tuesday India and Pakistan can move forward as good, friendly neighbors who have a stake in each other's future.

Khar plans to meet with Indian Foreign Minister S.M. Krishna on Wednesday in India's capital, New Delhi, for talks expected to focus on terrorism, trade and Kashmir.

On Tuesday, Indian Foreign Secretary Nirupama Rao and her Pakistani counterpart, Salman Bashir, met in New Delhi to lay the groundwork for Wednesday's higher-level talks. The two foreign secretaries discussed confidence-building measures including cross-border trade and travel through the disputed Kashmir region.

Peace talks between the South Asian neighbors resumed in February, nearly two years after 166 people were killed in an attack by Pakistani militants in India's financial capital, Mumbai.

Earlier this month, a series of bomb blasts killed 24 people and injured more than 130 others in Mumbai. Indian authorities have questioned suspected members of the Indian Mujahideen, a banned group linked to Pakistan's Lashkar-e-Taiba, which has claimed past attacks in India.

Pakistan condemned the violence immediately after the bombings.

No one has claimed responsibility for the blasts.

Kashmir is divided between India and Pakistan and claimed in full by both. Muslim separatists have been fighting for Kashmir's independence from Hindu-majority India or a merger with Muslim-majority Pakistan. Thousands have been killed in the insurgency.