Dhaka, Bangladesh, Nov 13, SPA -- Pakistani Prime Minister ShaukatAziz said Sunday that peace talks with India were making progress, but core issues such as the divided region of Kashmir still remain. "We are going step-by-step in confidence-buildingmeasures (with India)," Aziz told reporters in theBangladeshi capital, Dhaka. "And my meeting with theIndian prime minister here yesterday was another step inthe right direction." On Saturday, Aziz held talks with his Indian counterpartManmohan Singh on the sidelines of a regional summitattended also by leaders from five other South Asiannations. Aziz said his talks with Singh covered "all aspects ofour bilateral relations including terrorism and trade" andthat they were "productive." During his meeting with Singh, Aziz said his country isagainst "all forms of terrorism and is ready to cooperatewith any country to combat the menace." On the issue of Kashmir, Aziz said Pakistan wants a"solution that will be sustainable and will reflect theaspirations of the people of Kashmir."--SPAA1121 Local Time 0821 GMT www.spa.gov.sa/302241