KARACHI - Two-point agenda containing amendments in the local government (LG) system and Talibanisation, dominated the first round of talks between PPP and MQM in London. The PPP delegation, led by Pakistan High Commissioner to UK Wajid Shamsul Hassan, consisted of senior minister Pir Mazhar-ul-Haq, Sindh Home Minister Dr Zulifqar Mirza, Speaker Sindh Assembly and NRB Chairman Dr Asim. While the MQM delegation comprised MQM Rabita Committee Deputy Convenor Dr Farooq Sattar, City Nazim Mustafa Kamal, Sindh governor Dr Ishratul Ebad Khan and other MQM Rabita Committee members. PPP and MQM had developed differences over threat of Talibanisation in Karachi, abolition of the local government system and job quota in the Sindh government. Consequent upon MQM refusal to join the federal cabinet and PM Gilani's repeated offer to MQM to join the government, Dr Mirza and Haq had been to London to hold talks with MQM top London-based leadership to resolve outstanding issues. It is pertinent to mention here that both parties' leaders held talks to make amendments in the LG system but could not reach any final conclusion. "PPP leadership want to restore the commissioner system, as done by the Punjab and NWFP governments, but MQM has strong reservations over this system which delayed the PPP bill to be passed by the provincial assembly," the sources disclosed. They said that despite the PPP had got simple majority in the Sindh assembly to table the bill, but it wants to bring onboard its coalition partner, MQM. PPP leaders opined that due to MQM's stance over Talibanisation, investors were reluctant to invest in the province and the capital is fast transferring abroad. Whereas the MQM demanded of the government to take solid steps to eliminate Talibanisation from Karachi. Dr Mirza had already rejected MQM's stance. Sources in both the parties further said that recent clash between the workers of PPP and MQM, which had taken place in Orangi Town, was also discussed in the meeting. MQM has shown reservations over lodging of FIR against its political workers.    Dr Asim, NRB Chairman, told The Nation that there was no deadlock in the talks between PPP and MQM, and both coalition partners would finalise an agreement to make amendments in the LG system. According to MQM's Press statement issued from London International Secretariat, talks between PPP and MQM leaders lasted for five hours. PPP leaders held one-on-one meeting with Altaf Hussain for more than two hours. Later Sindh governor and City nazim also joined the talks. MQM chief Altaf Hussain said that Sindh was the land of peace and there was no room for Talibanisation and religious fundamentalism in the province. It was decided in the meeting that all the political parties should play their role for maintaining peace in the province and for the welfare of the people. It was also decided that Pakistan is currently facing internal and external threats therefore to make democracy strong, all democratic forces should end their differences and work together to steer the country out from the current economic crisis. The meeting underlined the need to extend the reconciliation process at grass-root level and resolve the issue at provincial level.