ISLAMABAD, May 29: India has offered to lay oil pipeline up to Wagah from Jalandhar if Pakistan signed a long-term contract for petroleum product imports.

At the close of two days of talks, the two sides did not sign a memorandum of understating on trading of petroleum products, but agreed that expert-level talks would be held in the first week of July to discus specific volumes and prices of diesel and furnace oil to be imported from India.

`After these basic issues are settled the secondary topics like supply sources and transportation mechanism for oil products will also be finalised,` said an official of the petroleum ministry.

A member of the Indian delegation termed the talks a significant step in the right direction. `These were exploratory talks to judge if the supply and demand situation really exists that is why the delegation has been dominated by industry players.

During the future rounds of talks, he said, there would be greater presence of officials because issues like freight charges, taxations and even security clearance would be discussed.

The Indian oil sector has been offering to sell diesel to Pakistan for many years but trade restrictions and objections by security establishment never allowed the idea to materialise.