India and Pakistan Wednesday acknowledged that the trust deficit between them was \'shrinking\' and termed terrorism as a threat to both countries.The common acknowledgement came as External Affairs Minister S M Krishna met his Pakistani counterpart Hina Rabbani Khar, a day before the meeting of the prime ministers of the two countries on the sidelines of the SAARC summit. During the meeting, both leaders discussed issues of bilateral interests and agreed that terrorism was a threat to both countries.Krishna and Pakistani foreign minister met. Both leaders termed terrorism a threat to both countries and acknowledged that trust deficit between the two countries is shrinking,\' pti reported quoting official sources as saying at Addu in Maldives.Earlier, Krishna had sent out positive signals before the meeting, telling reporters accompanying him to Maldives that the environment was very positive and that \'the trust level has gone up\' between the two countries. Prime Minister Manmohan Singh and his Pakistani counterpart Yousuf Raza Gilani will meet tomorrow ahead of the inauguration of the eight nation summit and are expected to review the progress in bilateral relations. Positive signs have been witnessed in bilateral ties lately, including Pakistan\'s decision to grant the Most Favoured Nation trade status to India. Krishna also welcomed Pakistan\'s decision to normalise its trade ties with India, and look forward to full implementation of SAFTA obligations by all SAARC member states to enhance intra regional trade. Khar also said that while the two sides have many miles to move ahead, the recent improvement in environment was a welcome sign. \'I think we can certainly say from our side that we look at this environment to have been improved considerably and the trust deficit that typically exists between the two countries and has existed for many years, to have been reduced to a large order,\' she said. On the bilateral talks between the two sides, she said she expected them to further improve the \'positive environment\' that has existed between the two countries.
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