In a major step ahead in cultural exchanges between the two nations, India and Pakistan today agreed to host mutual film festivals with Islamabad indicating it may lift its ban on Bollywood movies.

During talks between Cultural Secretary Badal Das and his Pakistani counterpart Jalil Abbas, India reciprocated Pakistan's offer to host a film festival, official sources told.

They said Pakistan also offered to host a joint seminar of Indian and Pakistani film and TV artistes to address each others' concerns over the ban on Bollywood movies and Indian TV channels there.

"Pakistan said it would host an Indian film festival to which we reciprocated with a similar offer. Pakistan said it wanted to move in the direction of lifting the ban, but would have to take its film industry into confidence. Therefore it offered to host a joint seminar of the two industries."

The two countries also agreed in principle to exchange documentary-dramas for telecast on their national broadcasters, he added.

"The specifics will be worked out, of course in consultations with the I and B Ministry, later on showing Pakistani docu-dramas in the country," a source said.

In the talks, Pakistan also offered to host a cultural and tourism festival in Mohenjadaro on the Indus valley civilisation, he added.

Besides, the Pakistani officials requested collaboration with the National School of Drama, the Sahitya Kala Akademi, and the Sangeet Natak Akademi and joint research in archaeology. The two-day talks on promotion of friendly exchanges will resume tomorrow.