"There was discussion on possibility of two general tours of inspection, one each in either country during 2003-04 in keeping with the provisions of the treaty," the release, issued after a three-day meeting of Indus Commissioners from both countries, said.

This was the first official interaction between India and Pakistan since Prime Minister Atal Behari Vajpayee last month offered a "hand of friendship" to Pakistan, easing 17 months of strained relations that had brought the nuclear-capable South Asian adversaries to the brink of war.

Every year before the monsoon season, the traditionally hostile neighbours hold official talks to work out a water-sharing agreement based on the 1960 Indus Water Treaty.

The treaty was negotiated between 1951 and 1960 following rising tensions between the two after New Delhi stemmed the flow of Indus tributaries to Pakistan on April 1, 1948 for lack of an agreement.

Under the treaty, India has exclusive rights over the waters of the Sutlej, Ravi and Beas tributaries of the Indus while Pakistan has rights over the Indus, Chenab and Jhelum rivers.

Current issues of contention include two dams being built by India -- one is nearing completion while the other is in the pipeline.

Islamabad has objected to the construction of the Bagliyar dam on the Jhelum and the proposed Kirshna Ganga dam on the Chenab river, an official said.

Asked about the issue of inspection of the river projects, Pakistan Indus Commissioner Jamait Ali Shah said, "Whatever arrangements are given in the treaty, we are moving ahead. I am totally satisfied."