Both Britain and the US State Department have welcomed a speech by Pakistan President Pervez Musharraf promising to crack down on militants.
Indian officials declined immediate comment on the speech. The foreign ministry is expected to give India's official reaction at a briefing tomorrow.
A senior US State Department official said the speech "provides a basis for both sides to ratchet down the tension".
The official also said General Musharraf's speech marks a clear break with the violence of the past in Kashmir and Pakistani society as a whole.
US Secretary of State Mr Colin Powell is set to visit Pakistan and India next week to try to encourage the two countries to step back from military conflict.
EU foreign policy chief Mr Javier Solana welcomed the ban on extremists and urged a renewal of dialogue between India and Pakistan.
"I want to commend [Musharraf] for the moves he announced to curb extremism, including steps against those seeking to disrupt the internal stability of the country and those promoting terrorism abroad," he said in a statement.
Britain also applauded the speech. A spokesman for the Prime Minister Mr Tony Blair described it as a "courageous and forceful defence of a tolerant and moderate Islam and condemnation of all forms of sectarianism and religious hatred".
He said Britain welcomed President Musharraf's appeal for a "normalisation of relations with India" and the resolution of differences over Kashmir through peaceful means and dialogue.