A SUSPECTED Islamic militant carrying time bombs and hand grenades was arrested in Pakistan’s largest city Karachi yesterday.

India and Pakistan took a giant leap to put more than a half-century of bloodshed behind them, agreeing today to start talks next month on core disputes of nationalism and religion that have taken the nuclear-armed nations into three wars.

The leaders of India and Pakistan discussed ways to resolve the poisonous dispute over Kashmir during their historic meeting on the sidelines of a South Asian summit, Pakistani officials said today, predicting a breakthrough in relations between the nuclear-armed neighbours.

India’s prime minister called on South Asia’s nations to put aside a long history of suspicion and “petty rivalries” and embrace a future of trust and understanding, before a historic meeting with his Pakistani counterpart.

Leaders of India and Pakistan held their first direct talks today since they nearly went to war two years ago.

The Indian and Pakistani armies will stop firing across the disputed Kashmir frontier from midnight tonight in a further easing of tensions between the nuclear-armed neighbours, officials said.

Pakistan’s prime minister today announced a cease-fire by forces on the Line of Control that divides the disputed Himalayan region of Kashmir, where fire is routinely exchanged with India.

PAKISTAN yesterday test-launched a missile capable of carrying a nuclear warhead, saying it was the first in a series of tests in the next few days.

Pakistan successfully test fired a medium-range nuclear-capable missile early today, an army spokesman told The Associated Press.

Pakistan’s premier restored transport links with neighbour India today, announced full diplomatic ties and called for confidence-building measures concerning their nuclear arsenals.

Pakistan raised the stakes in nascent peace overtures with India today, saying it would destroy its nuclear arsenal if its South Asian rival did the same.

India has given a “positive” reply to Pakistan’s invitation for Indian Prime Minister Atal Bihari Vajpayee to visit, a Foreign Ministry spokesman said in Islamabad today.

The Indian prime minister today offered to hold talks with nuclear-armed neighbour Pakistan to end 50 years of war and acrimony.

Pakistan’s information minister today said a telephone call from Prime Minstar Zafarullah Khan Jamali to his Indian counterpart was a critical “icebreaker” in the stand-off between the South Asian nuclear rivals.

Pakistan made a major peace overture to nuclear rival India today with a telephone call from Prime Minister Zafarullah Khan Jamali to his Indian counterpart Atal Bihari Vajpayee, state media reported.

MOURNERS buried three girls killed in a Christmas grenade attack on a tiny church in eastern Pakistan, and police detained an Islamic cleric who allegedly called on followers to kill Christians days before the bombing.

Zafarullah Khan Jamali was sworn in as Pakistan’s prime minister today, officially ending the nation’s three-year military dictatorship on a promise to return the country to democracy.