"A meeting took place at Kaman Post along the Line of Control (LoC) in north Kashmir between officials from this side and Pakistan-occupied Kashmir which agreed to resume the Srinagar-Muzaffarabad bus service from Monday," a senior government official said.
He, however, said the meeting failed to end the deadlock over the trade activities.
PoK authorities had suspended both trade and travel on Srinagar-Muzaffarabad route on January 17 after the arrest of a Pakistani driver along with a huge consignment of brown sugar worth Rs 100 crore.
But, the Indian officials informed their PoK counterpart that the evidence cannot be handed over to them as the Centre wanted Pakistan to seek the same through its High Commission.
Over 110 packets of brown sugar were recovered from a Pakistani vehicle at Salamabad Trade facilitation centre earlier this month. The driver of the vehicle was arrested.
The PoK officials refused to take back other 48 drivers and vehicles from that side and also detained the 27 Indian drivers and their vehicles, demanding the release of the arrested driver.