The South Asian rivals said they would "operationalise... as soon as possible" the hotline between their foreign secretaries, which had been agreed on in principle at earlier talks in June.

However, the meetings on so-called confidence-building measures did not produce an accord on giving each other prior notification of missile test-fires, officials said.

Both sides insisted they had made progress during the meetings between senior officials in Islamabad, which are the latest stage in a step-by-step peace process begun in January.

"We have agreed to operationalise it as soon as possible," Tariq Osman Hyder, additional secretary at Pakistan's foreign ministry, who led Pakistan's delegation told reporters when asked about the hotline.

The results of the talks would be submitted to the Indian and Pakistani foreign secretaries, who are scheduled to meet on 27-28 December, according to a joint statement issued by the two parties.

When pressed why the talks had failed to produce both agreements as had been predicted by officials earlier, the two sides blamed the "complex" issues involved.

India and Pakistan have a long history of bad blood since their independence from Britain in 1947 and have fought three wars, two of them over the disputed Himalayan state of Kashmir.

"These agreements are extremely complex. They raise many legal issues," said Hyder. "When we want to go forward on them we have to examine them carefully and I think both sides understand the concerns of the other side."

Pakistan and India held back-to-back nuclear detonations in May 1998 and have twice come close to war since then over disputed Kashmir, which is divided between the two and claimed by both in full.

The two countries hold frequent missile tests although they have an informal arrangement to give each other prior notification. They had been expected to formalize the agreement in a sign that the peace process was on track.

However Hyder added: "South Asia is no longer a nuclear flashpoint."

The head of the Indian delegation at the talks, Meera Shankar, said the two sides were trying to resolve the issue in a "mutually acceptable" way and would continue discussions at a later date.

"I would not characterise these as hurdles but agreements of this nature are complex and raise many questions," she told reporters after the talks.

The joint statement said the hotline was intended to "prevent misunderstanding and reduce risks relevant to nuclear issues."

The two sides also agreed to upgrade an existing hotline between India and Pakistan's senior military officers.

Earlier Pakistani and Indian officials held the first talks on conventional weapons under the current peace dialogue.

"The two sides held discussions on conventional arms to understand each others' perspective. It was a get-to-know meeting," foreign ministry spokesman Masood Khan said after the meeting.

India has a clear edge in conventional military strength over Pakistan, and Islamabad wants a balance for regional stability.

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