SHARM EL-SHEIKH (Reuters/AFP/APP) - Pakistan and India agreed on Thursday to work together to fight terrorism and ordered their top diplomats to meet as often as needed to try to rebuild ties damaged by last years Mumbai attacks. But Indian Prime Minister Manmohan Singh, speaking after talks with his Pakistani counterpart Yousuf Raza Gilani in Egypt, ruled out a resumption of formal peace talks, known as the 'composite dialogue, that Islamabad has been seeking. Composite dialogue cannot begin unless and until terrorist heads which shook Mumbai are properly accounted for, (and) perpetrators of these heinous crimes are brought to book, Singh told a news conference after talks with Gilani. The starting point of any meaningful dialogue with Pakistan has to have their commitment not to let their territory be used for terrorist activities against India, Singh added. If acts of terrorism continue to be perpetrated, there is no question of a dialogue, let alone a composite dialogue. Singhs comments appeared to contradict a joint statement with Gilani in which the two leaders stipulated that action on terrorism 'should not be linked to the composite dialogue process. In his briefing to the media, Singh said: There should be serious, honest efforts to bridge the gap that separates the two countries. The joint statement, issued after the meeting between Singh and Gilani, said they had agreed to cooperate in the fight against terrorism. Both leaders affirmed their resolve to fight terrorism and cooperate with each other to this end, the statement said. Prime Minister Singh reiterated the need to bring the perpetrators of the Mumbai attacks to justice and Prime Minister Gilani assured that Pakistan will do everything in its power in this regard. It added: Action on terrorism should not be linked to the composite dialogue process and these should not be bracketed. The joint statement said the foreign ministries top civil servants, Indias Shivshankar Menon and Pakistans Salman Bashir, 'should meet as often as necessary and report to their countries foreign ministers. Singh said the meetings of the top civil servants would be used to determine the nature of the future dialogue. Singh said Pakistan has provided an updated status dossier on the investigation of the Mumbai attacks and had sought additional information and evidence in this regard. Singh said the dossier was being reviewed. On his talks with Gilani, Singh added: I reiterated to him that we are willing to go more than half the way provided they create the conditions for a meaningful dialogue. In their statement, Gilani vowed Pakistan 'will do everything in its power to bring those behind Mumbai to justice and Singh said India was 'ready to discuss all issues with Pakistan. The joint statement described terrorism as 'the main threat to both countries but the two premiers also agreed that action on terrorism should not be linked to peace talks. The statement described talks as 'cordial and constructive and said the two premiers covered the whole range of bilateral relations 'with a view to charting the way forward in ties. Prime Minister Singh said that India was ready to discuss all issues with Pakistan, including all outstanding issues, the statement said, adding that both countries agreed to cooperate in fighting terrorism. Both the leaders agreed that the two countries will share real time, credible and actionable information on any future terrorist threats, the statement said. Prime Minister Gilani mentioned that Pakistan has some information on threats in Balochistan and other areas, the statement said. Singh reiterated Indias interest in a stable, democratic Islamic Republic of Pakistan. The joint statement said: Both leaders agreed that the real challenge is development and the elimination of poverty. Both leaders resolved to eliminate those factors which prevent our countries from realising their full potential. Talking to reporters after the meeting that lasted around three hours, including delegation level and exclusive one-on-one talks, Prime Minister Gilani said Pakistan also raised the issue of threats in Balochistan and other areas. Gilani said he asked India that all core issues need to be discussed and composite dialogue should not be bracketed with terrorism. He said both the leaders have recognised that 'dialogue is the only way forward and agreed that the foreign secretaries should meet as often as necessary and report to the two foreign ministers who will be meeting on the sidelines of the forthcoming UN General Assembly. Earlier, Prime Minister Manmohan Singh received Prime Minister Gilani when he arrived at the venue. The two leaders warmly shook hands and had a photo-op before starting the talks at Maritim Jolie Ville Resort. The talks were held amidst hopes that the peace process might be reinvigorated to bring stability to the region. The two leaders were supported by delegations including Minister for Information and Broadcasting Qamar Zaman Kaira, Education Minister Mir Hazar Khan Bijarani and Minister for Science and Technology Azam Khan Swati, Minister of State for Foreign Affairs Nawabzada Malik Amad Khan, PML-N MNA Anusha Rehman and Foreign Secretary Salman Bashir. The Indian delegation included Foreign Minister SM Krishna, Foreign Secretary Shiv Shankar Menon, National Security Adviser MK Narayanan and Special Secretary Vivek Katju. Thursdays talks in the Egyptian resort of Sharm el-Sheikh was the third high-level encounter between the two neighbours since the Mumbai assault. Its a good step forward and its a way out of the impasse that the two sides found themselves in after Mumbai, said C Raja Mohan, professor of South Asia studies at Singapores Nanyang Technology University. Analysts said the statement had kept the nature of future dialogue open. They have affirmed their faith in dialogue without making any commitment on the precise nature of dialogue which means its open-ended and India will make its decision about dialogue when it is satisfied with Pakistans performance on terrorism, said Hasan Askari Rizvi, a Lahore-based independent analyst. Diplomats described the meeting as a breakthrough. The body language of the two prime ministers was very positive before the meeting reflecting that some agreement has been reached behind the scenes. The one-on-one meeting between the two leaders lasted over an hour. Monitoring Desk adds: Federal Information Minister Qamar Zaman Kaira said that Prime Minister Gilani has raised the issue of meddling from Indian side in the affairs of Balochistan during his meeting with Prime Minister Singh besides conveying his stance that peace talks between the two countries be not linked to terrorism. Talking to a TV channel, Kaira said that the Prime Minister made it clear to his Indian counterpart that solution to all the issues be found through dialogue. He said menace of terrorism be curbed and focus be placed on addressing the problems facing the people of two countries. Kaira hoped that meeting between the both Prime Ministers would help end the deadlock and would be instrumental for establishment of peace in the region. More headway would be made in this direction during the forthcoming Secretaries and Foreign Secretaries level talks between Pakistan and India, he underlined.