Islamabad, Sep 22 - Pakistan appears to be setting the tone for the first high-level contact with India in two months, with its top leadership asserting it wanted improved sub-continental ties in the interest of peace and development.

At a meeting with former US president Bill Clinton in New York Monday, Pakistani President Asif Ali Zardari said the resumption of the sub-continental composite dialogue was in the best interests of the region.

Zardari also reiterated that Pakistan was determined to prevent its territory from being used against any other country, APP news agency reported.

On his part, Prime Minister Yousuf Raza Gilani said Tuesday that Pakistan wants good relations with all neighbouring countries, including India, on the basis of equality.

Addressing a large gathering at the Multan circuit house, Gilani said Pakistan wishes to resolve the water and Kashmir disputes with India through negotiations.

He also stressed that the two nuclear powers should decide to move forward and focus on the well-being of their poverty-ridden people, adding this will pave the way for a socio-economic revolution in the region.

He said the 1.25 billion people of the two countries need development, education, health facilities, and business investment to get their problems addressed.

Gilani comments come a day after it was announced Monday that with Pakistan arresting suspected Mumbai attacks mastermind Hafiz Saeed, Indian External Affairs Minister S.M. Krishna will hold talks with his Pakistani counterpart Shah Mehmood Qureshi in New York Sep 27 to review Pakistan's action against the 26/11 terrorists.

The foreign ministers' meeting will be preceded by talks between India's Foreign Secretary Nirupama Rao and her Pakistani counterpart Salman Bashir in New York Sep 26 on the sidelines of the UN General Assembly session.

'The foreign secretaries meeting is being held in accordance with the decisions made during the talks between the prime ministers of Pakistan and India at Sharm-el-Sheikh in July,' Bashir said in Islamabad.

'The foreign ministers will meet to discuss the agenda prepared by the two foreign secretaries,' he said.

Bashir said: 'All the issues between the two countries, including terrorism and the core issue of Jammu and Kashmir, will be discussed in these meetings.