The Indian Ministry of External Affairs in statement on Friday said: "India and Pakistan have mutually agreed to resolve matters related to the treatment of diplomats and diplomatic premises, in line with the 1992 "Code of Conduct for the treatment of diplomatic/consular personnel in India and Pakistan"."

A similar statement was issued by Pakistan's Foreign Office.

The Code provides for "smooth and unhindered functioning" of the diplomats in both the countries.

The codes are also in conformity with the international laws.

Earlier this month, Pakistan pulled out from the World Trade Organisation (WTO) meet in New Delhi in protest against the alleged harassment of its diplomats in India.

India had invited Pakistan's commerce minister Pervez Malik to participate in the meeting which took place on March 19 and 20.

Though Islamabad had initially accepted the invitation last month, Daily Pakistan quoted its sources in the foreign ministry having confirmed that the situation had changed after repeated harassment of families of diplomats.