Pakistan, Malaysia agree to work for free trade

* Prime Minister Aziz wants Malaysian banks to open branches in Pakistan
* Badawi says Malaysia willing to accept more Pakistani workers

Staff Report

ISLAMABAD: Pakistan and Malaysia agreed on Wednesday to start talks on a preferential trade arrangement (PTA) that would eventually lead to a free trade agreement (FTA).

“Both sides agreed to hold talks on a PTA which will ultimately lead to an FTA between the two countries,” Prime Minister Shaukat Aziz said at a joint press conference with his Malaysian counterpart Abdullah Ahmed Badawi after a 25-minute one-on-one meeting.

Badawi arrived in Pakistan on Tuesday for a four-day visit during which he will also meet with President Gen Pervez Musharraf.

Aziz and Badawi agreed to enhance cooperation in agriculture, information technology, education, tourism and culture. “We have discussed various bilateral, regional and international issues and found a unanimity of ideas,” Aziz said.

They also discussed Pakistan-India relations. “Pakistan intends a peaceful settlement of the Kashmir issue according to the wishes of the Kashmiri people and Malaysia supports it,” Aziz said.

Reforms in the United Nations and restructuring the Organisation of the Islamic Conference, of which Malaysia is the current chairman, also came up. Aziz said they agreed to speed up the reforms in the OIC to make the body a true representative of the Ummah.

The prime minister said Pakistan could benefit from the Islamic banking experience of Malaysia and told Badawi Pakistan would welcome Malaysian bank branches in the country.

“Pakistan offers attractive investment opportunities and invites Malaysian entrepreneurs to benefit from these opportunities,” Aziz said, adding that they also discussed sending more Pakistan workers to Malaysia and the ministers concerned of the two countries would discuss the matter in detail.

The Malaysian prime minister said his country attached great importance to its relations with Pakistan and would continue to strive for the expansion of relations in all fields.

Badawi said there were tremendous opportunities for expanding cooperation between the two countries. “Both countries can work together in agriculture, information technology, telecom, finance, construction, culture and human resources,” he said, also stressing the need for more people-to-people contact.

He appreciated the Pakistan-India peace talks and said the Kashmir issue should be settled through negotiation and according to the wishes of the Kashmiris. Malaysia also supported the SAARC process and Pakistan’s efforts during its chairmanship to make the regional grouping more effective.

He said Malaysia was willing to accept more Pakistan workers. He appreciated Musharraf’s “vision of enlightened moderation”, hoping it would help bring Western and Islamic countries closer.

He said restructuring of the OIC was underway and hoped a second meeting of eminent people from Muslim countries would be held in Islamabad soon to move this process forward.

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