At a meeting with Marc Grossman, the US Special Representative for Afghanistan and Pakistan on Monday, Zardari said, "In the absence of well-defined and documented terms of engagement, wrong plugs may be pulled at the wrong times by any side that could undermine bilateral relations." Ties between Pakistan and the United States should be based on "mutual interest, trust and mutual respect," he added.

"Settle disputes amicably"

The president said that terms of engagement should be clearly defined and specified so that any dispute could be settled amicably, according to a statement from his office. Zardari gave no further details about the proposed terms of engagement, but they are likely to include terms for conducting US drone strikes that routinely target militants in Pakistan's tribal areas, more transparency on CIA activities in Pakistan and a resumption of military aid.

Relations between Islamabad and Washington have been on a downward spiral since Al Qaeda leader Osama bin Laden was killed on May 2 in a clandestine raid by elite US forces in Abbotabad, close to Pakistan's capital, Islamabad. Washington did not inform Islamabad about the raid, leaving Pakistan's military humiliated after the operation led to allegations of complicity in sheltering bin Laden close to the country's leading military academy.

Simmering tensions

In the latest sign of tension, US diplomats based in Islamabad have complained about new restrictions preventing them from travelling inside Pakistan. The U.S. State Department said it was working with Islamabad to resolve the travel issue, and declined to say whether it would impose similar limits on the movement of Pakistani diplomats in the United States.

Some weeks ago, Obama's administration suspended about a third of its $2.7 billion annual defence aid to Pakistan, but assured Islamabad it was committed to a $7.5 billion civilian assistance package approved in 2009.

The US has been pushing Pakistan to crack down on Islamist militant bases in tribal areas bordering Afghanistan, but frequent drone attacks in the region have drawn scathing criticism from local people. Pakistan's reluctance to mount offensives against militants in the Northwest have also added to the tension in bilateral ties. Despite this, both sides are trying hard to prevent a complete breakdown of relations between them.

Report: Manasi Gopalakrishnan(AFP, Reuters)
Editor: Grahame Lucas