Hundreds of prisoners are being held by both sides
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India and Pakistan have begun talks on drug trafficking, terrorism and on the fate of prisoners stuck in jails on both sides of the border.
The talks are part of an ongoing dialogue process which began nearly two years ago.
Both sides have initiated a series of steps as part of the peace process, including easing travel restrictions and launching a Kashmir bus service.
But both have still to resolve the long-running Kashmir dispute.
The home secretaries of both countries are leading the latest round of talks which are being held in Delhi.
"Usually the agenda is terrorism and drug trafficking but this time we have requested that we would like to discuss the issue of prisoners held in both countries," Pakistani home secretary Syed Kamal Shah told journalists on Sunday.
The issue has become significant after Pakistan's Supreme Court recently upheld a death penalty against an Indian national convicted of carrying out bomb attacks in Pakistan.
The family of the man Pakistan says is Manjit Singh but whose relatives say is actually Sarabjit Singh has been pressing for his release.
Last week, Pakistan accepted a request by India to let its diplomats visit Singh in prison.
Both sides say several hundred of their nationals are being held in prison the two countries.
"The sooner they go home, the better," Mr Shah said.
Militants
India says it will also ask Pakistan to release the heads of militants groups fighting Indian rule in Kashmir and based in Pakistan.
Delhi also wants Islamabad to hand over one of the country's most wanted men, Dawood Ibrahim, who it alleges is living in Karachi.
Pakistan has always denied that Mr Ibrahim is in the country.
"The fugitives, who are known international criminals indulging in terrorist activities, should face the process of law," India's junior home minister, Sri Prakash Jaiswal, is quoted as saying by the Associated Press.
Later this week, the top official in the two foreign ministries will meet in Islamabad.
The meeting comes ahead of the United Nations General Assembly in New York in September, which will be attended by both Prime Minister Manmohan Singh of India and Pakistani President Pervez Musharraf.