Hopes of progress at the SAARC meeting in Kathmandu now hinge on a morning retreat outside the city.
The gap between promise of SAARC and reality of its accomplishments needs to be breached, said Sharif.
India and Pakistan have been involved in a war of words after New Delhi cancelled a Foreign Secretary-level meeting in August.
During his telephonic conversation, Sharif invited Narendra Modi to visit Pakistan.
Khurshid underlined the need to give further boost to bilateral trade ties in order to meet the requirements of the people of both Pakistan and India.
US asked India to reconsider its stand on including civilian diplomats in proposed Indo-Pak talks.
Missing persons are believed to be in the custody of the intelligence agencies.
Singh said Sharif should recognise that cross-border firing is detrimental to bilateral ties.
Modi called Rahuls public rubbishing of ordinance on convicted lawmakers,an ‘unprecedented’ event.