India welcomes Pakistan pull-back

Pakistani forces are reported to have already begun withdrawal

In a further sign of easing tensions in Kashmir, India has welcomed Pakistan's announcement of a partial troop withdrawal from the Line of Control, which separates the Indian- and Pakistani-administered sectors.

Senior officials said the pull-back could lead to peace talks being resumed with Pakistan.

A relaxed mood prevails in Srinagar, though security remains tight

But there was no comment from Delhi on the Pakistani call for a reciprocal withdrawal of Indian forces.

The BBC Delhi correspondent says India still sees what it calls Pakistan's support for Kashmiri militants as the main problem.

Pakistan's move came shortly after Indian Prime Minister Atal Behari Vajpayee said he would extend India's unilateral ceasefire in Kashmir - during the Muslim holy month of Ramadan - by a month.

Correspondents say the moves are likely to ease tension in Kashmir, where 34,000 lives have been lost since a separatist insurgency began in 1989.

The main political alliance of Kashmiri separatists - whose reaction has so far been mixed - are meeting to discuss the developments.

This initiative ... raises the hopes of the world community that peace is possible in Kashmir

President Clinton

Elsewhere, US President Bill Clinton, who visited the region in March, said India and Pakistan had raised the hopes of the world community that peace was possible in Kashmir.

"To achieve that end, I continue to believe that all parties should reject violence and work for a peaceful resolution of the conflict through dialogue," the president announced in a statement.

The Indian ceasefire, which began at the end of November, is the first to have been offered by Delhi in Indian-administered Kashmir.

'Bold initiative'

The Pakistani army statement did not give the exact strength of the troops being withdrawn, but said it was a "bold initiative".

It said the move was aimed at demonstrating Pakistan's "earnest and genuine" desire to de-escalate the situation and facilitate meaningful dialogue over Kashmir.

Pakistan had earlier asked its troops to exercise maximum restraint on the Line of Control, after India made its first ceasefire announcement at the beginning of the holy month of Ramadan.

Ceasefire

Mr Vajpayee said that there was now a more optimistic mood in Kashmir and the "constituency for peace" had been expanded.

The government is greatly heartened by the response of the citizens, political parties and other organisations in the state of Jammu and Kashmir

Prime Minister Vajpayee

The government will review the situation again after the 26 January Republic Day holiday, he said in parliament on Wednesday.

He said that a recent decline in activity by separatist militants in the disputed region and a reduction in exchanges of fire with Pakistani forces had prompted his decision.

The prime minister added that exploratory steps would be initiated towards resuming dialogue with Pakistan over the region, though this would require a "suitable environment".

Talks between the two countries broke off last year as they came to the brink of war over Kashmir.