Indian and Pakistani prime ministers met in Beijing on Friday and reviewed the historic resumption of trade across the Line of Control that divides Kashmir, even as Yousuf Raza Gilani assured Manmohan Singh that his government was committed to "controlling terror".

"He assured me that they (Pakistan) are very seriously committed to working with us to control terror. Terror is the common enemy of both India and Pakistan," Manmohan Singh quoted Gilani as telling him when they met in Beijing on the sidelines of the summit meeting of Asian and European leaders.

"We expressed happiness at the resumption of trade on the two routes in Jammu and Kashmir and also discussed possibilities of increased trade between out two countries," said Manmohan Singh.

India and Pakistan opened a trade route across divided Kashmir for the first time in six decades on Oct 21, a step aimed to ease recent strains between the two rival countries.

The trade route was functional between Muzaffarabad, capital of Pakistan-administered Kashmir, and Srinagar. The other Rawalakot-Poonch route will be formally open later this month.

"He (Gilani) also told me about their commitment to the success of the joint anti-terror mechanism," said Manmohan Singh after his 30-minute meeting.

A meeting of the joint anti-terror mechanism was held in New Delhi on Friday.

Among the other issues that came up for discussion was the implementation of the Indus Water Treaty, which Manmohan Singh said would be implemented in letter and substance.

To a question whether there was a possibility of India not honouring its commitments, the prime minister said, "We will not allow that situation to develop. We are committed to honour all our commitments."

This is the second meeting between both leaders after the one during the South Asian Association of Regional Cooperation (SAARC) summit in Colombo in August.