New Delhi: Noting that Pakistan has "moved forward" on trade-related issues with India, Prime Minister Manmohan Singh on Sunday said both the countries feel that the bilateral economic and trade potential should be harnessed.

Singh and Pakistan President Asif Ali Zardari felt that the two neighbours should tap into the considerable potential of bilateral economic and trade ties, Foreign Secretary Ranjan Mathai told reporters here after a 40-minute one-on-one meeting between the leaders which covered a wide gamut of bilateral, regional and global issues.

"The Prime Minister expressed appreciation of the fact that Pakistan has moved forward on trade-related issues," mathai said.

He said that the issue of improving trade relations has been discussed by the Commerce Ministers and Commerce Secretaries, and there is a way forward that has already been identified.

The two leaders also discussed developments in the region and are determined to use the potential of regional co-operation for the economic development of people of both countries, he said.

Zardari made a stopover in the capital for little over two hours on his way to pilgrimage to Ajmer, Rajasthan.

Singh and Zardari also said that liberal visa regime, agreed upon in 2011, should be inked during the forthcoming meeting of the respective home and interior secretaries.

The Prime Minister also hosted a lunch for Zardari and his son Bilawal. External Affairs Minister S M Krishna, Home Minister P Chidambaram, Rahul Gandhi, BJP leaders L K Advani and Sushma Swaraj and Pakistan Interior Minister Rehman Malik were among the 20 guests at the lunch.