India and Pakistan met for the third time to continue its composite dialogue process. At the end of the first day, India has expressed its unhappiness with Pakistan on the lack of progress on two issues critical to India. Pakistan's failure to contain official sponsorship of terrorism and failure to make any progress on legal and consular processes to extradite criminals are two issues that are affecting Indian perceptions. Pakistan has expressed displeasure at Indian reference to the near civil war situation in Baloachistan. The Pakistan delegation repeated allegation of their President about Indian material and financial support for insurgency in that province. India dismissed these allegations as "unfounded" and rebel leaders have called the Pakistani President a liar while rejecting the notion that they received external support. In fact, they said they are using weapons provided by Pakistan's Inter-Services Intelligence (ISI) and others procured for a low price from black markets operating with impunity in Pakistan. India has also presented Pakistan with a proposal that no defense posts or work be taken up along the Line of Control (LoC) and regular brigadier-commander flag meetings between the two armies. However, both sides expressed happiness with the continuation of this dialogue.

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