The foreign ministers of nuclear-armed rivals Pakistan and India will on Thursday hold wide-ranging talks aimed at building trust and resuming frozen peace talks.

The two nations are unlikely to make headway over long-standing border disputes or Pakistani militant activities that raise fears in India, say experts, but the meeting presents a chance to ease deep-seated distrust.

Indian foreign minister, Mr S.M.Krishna, will meet his counterpart in Islamabad in the latest high-level contact since New Delhi froze a four-year peace process after blaming the 2008 Mumbai attacks on Pakistani-based militants.

Tentative moves to restore fragile relations began in April when the Indian and Pakistani prime ministers met on the sidelines of a regional conference in Bhutan. That was followed by a meeting of senior civil servants last month.

Both sides said Krishna and Pakistani foreign minister, Mr Shah Mehmood Qureshi, are expected to discuss "all issues" concerning their countries' relations.

"There is no fixed agenda... all issues are on the table," Pakistani foreign ministry spokesman, Mr Abdul Basit, told AFP.

The ministers will try "to work out the modalities of restoring trust and confidence in the relationship, thus paving the way for a substantive dialogue on issues of mutual concern" said India's foreign ministry.

The recent thaw has been encouraged by Western allies, in particular the United States, which sees regional stability as key to winning the war in Afghanistan and has pushed Pakistan to fight Taliban insurgents.

A host of border and resource issues have plagued relations between India and Pakistan since Britain partitioned the subcontinent in 1947, but the issue of homegrown extremism next door is likely to top India's agenda.

The peace process between the South Asian neighbours collapsed when 10 Islamist gunmen went on the rampage in India's commercial capital Mumbai in November 2008, leaving 166 people dead.

New Delhi and Washington blame the attack on outlawed Pakistani group Lashkar-e-Tayyaba and demand that Islamabad bring the masterminds to justice.

A Pakistani court has charged seven people in connection with the Mumbai attacks, including alleged mastermind Zakiur Rehman Lakhvi, but the process has moved slowly amid requests for further evidence from the Indian authorities.

India and Pakistan have fought three wars since 1960, two over the disputed Kashmir territory, where the Indian army is currently facing unrest following accusations of civilian killings in the Muslim-majority valley.

Krishna has expressed hope that Thursday's talks can be beneficial and would include discussion of cross-border militancy and divided Kashmir.

Analysts said the meeting could move relations in a positive direction, but cautioned against high expectations.

"At this stage I think we should really refrain from attaching many hopes until the issues related to the Mumbai attacks are taken forward in a face-saving way for both (governments)," said Pakistan analyst Imtiaz Gul.

"This is just another step to the resumption of the bilateral dialogue," he added.

Indian analyst Ramesh Chopra, an independent strategic adviser and retired army officer, said the two sides were still unable to agree on what to discuss.

"Delhi is insisting that terrorism be dealt with first, while Islamabad wants all issues, most importantly Kashmir, on the table immediately," he said.

"But the fact that India and Pakistan are talking at regular intervals is a positive development," he said, cautioning India to "maintain a courteous yet firm stand on all issues."