"This is a very positive development and we welcome it," Foreign Secretary Hemayetuddin told reporters about the lifting of emergency by the Nepalese monarch.

He said, " We welcome any development that will contribute to peace and stability in South Asia."

Nepalese King Gyanendra yesterday lifted the emergency he had imposed after seizing power in February by firing the government, and assuming absolute powers suspending civil liberties.

Asked about Indo-Bangladesh foreign secretary-level meeting, Hemayet said Dhaka would be responding to the Indian proposal to hold the meeting in New Delhi in the first week of June.

He said all bilateral issues will come up at the foreign secretary-level talks.

It was learn that India proposed the talks between June 5 and June 15.

Asked about dates for the stalled Saarc summit, Hemayet said Pakistan continued consultation with the Saarc capitals to find a set of dates convenient to all. As host Bangladesh is also working for a suitable schedule.

"We are committed to the Saarc and we want early convening of the summit at dates convenient to all," the foreign secretary said.