Pakistan may come up with a set of fresh proposals on Kashmir when External Affairs Minister Pranab Mukherjee meets his Pakistani counterpart Shah Mahmoud Qureshi in Islamabad on Wednesday to begin the fifth round of the Composite Dialogue Process, according to reports.

Pakistan President Pervez Musharraf [Images] had earlier presented a four-point formula to resolve the Kashmir problem, which included phased withdrawal of troops from Kashmir, local self government and joint supervision.

However, the newly-elected government was not keen on carrying forward the Musharraf formula and would present a new set of proposals, the reports said.

The reports said that the two ministers are also likely to reach some agreement on prisoner exchange. India released 14 Pakistani fishermen on Saturday and handed them over to the Pakistani authorities at Wagah.

Liberalisation of visa regime might also be discussed, the reports said.

The two ministers are also likely to discuss finalisation of trade across the Line of Control by allowing truck service on the Srinagar-Muzaffarabad route.

This would be the first contact between India and the new government in Pakistan after the February elections.