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Pakistan, S Arabia sign 5 agreements

* Vow to increase economic, political and technical cooperation
* Saudi Arabia extends $187m as soft loan for quake reconstruction

By Umer Farooq

ISLAMABAD: Pakistan and Saudi Arabia have signed five agreements to enhance cooperation in education, trade and politics.

The agreements were signed following a meeting between Saudi King Abdullah and Prime Minister Shaukat Aziz on Thursday. They include: a memorandum of understanding (MoU) for political consultation between the foreign ministers of the two countries, along with agreements on cooperation in technical education and vocational training, scientific and educational cooperation between the two countries’ education ministries, avoidance of double taxation and provision of tax evasion regarding tax on income, and scientific and technological cooperation.

Both sides discussed all aspects of Pak-Saudi relations along with regional and international issues, including the Pakistan-India peace process, the evolving regional security situation, Afghanistan, the Iranian nuclear issue, the situation in Iraq and the revitalisation of the Organisation of Islamic Conference (OIC).

President Pervez Musharraf also joined the meeting later on.

The Saudi king expressed special interest in Pakistan’s progress in science and technology, and discussed ways to improve cooperation between the two countries in the field.

According to the terms of the agreement on science and technology, a joint committee will be formed to ensure that both countries exchange research and development projects. Aziz briefed the Saudi king about the latest developments in the Indo-Pak composite dialogue process. Both leaders agreed that the Iranian nuclear crisis should be resolved in a peaceful manner.

Abdullah condoled with the people and government of Pakistan on the devastation caused by the October 8 earthquake. Saudi Finance Minister Dr Ibra Alsaf informed the prime minister in a separate meeting that Saudi Arabia will soon provide a $133 million grant pledged for the reconstruction of the quake-hit areas. He announced that the Saudi government will extend an additional $187 million in soft loans to Pakistan. Aziz invited Saudi businessmen to invest in an oil refinery that the government is planning to establish in the coastal areas. The two agreed to arrange a joint meeting of the Pakistani and Saudi business communities. Aziz hoped that the conference would be held in May. Briefing the Saudi finance minister about water shortage problems, Aziz said that the government has decided to set up a consortium of credit suppliers to construct water reservoirs in the country. He said that Saudi entrepreneurs could also invest in this project.

Aziz said that the Pan-Islamic Fund proposed by President Musharraf could create new opportunities for development in the Muslim world.

King Abdullah left for Saudi Arabia in the evening.

Online adds: Abdullah appreciated Pakistan’s role to revive the OIC and called Pakistan an “important country of the Muslim world” which had always played a major role in the OIC.

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