PARIS, July 3: France and Pakistan agreed on Thursday to identify areas of enhancing bilateral trade and economic cooperation.

President Pervez Musharraf and Prime Minister Jean Pierre Raffarin told newsmen after an hour-long meeting that the two countries would work together to strengthen and deepen the bilateral ties.

The two leaders said their meeting took up many regional and international issues of common interest to both countries but the meeting mainly focused on enhancing trade and economic relationship.

President Musharraf said he briefed the French leader about the conducive investment climate and the vast business opportunities existing in Pakistan.

The two leaders also discussed the renewal of financial assistance to Pakistan for improvement in social sector.

“The French Prime Minister was gracious enough to suggest that we should identify specific areas of investment in Pakistan through governmental as well as private sector interaction,” President Musharraf said.

The French Prime Minister said: “We agreed that development is clearly the only way in which we can fight terrorism.”

Answering a question President Musharraf said that democracy was very much functioning in Pakistan.

The President expressed the hope that the two countries would move forward to increased investment in Pakistan.

Replying to a question the French Prime Minister said during the meeting they referred to the tragic incident of last year in Karachi when French naval engineers lost their lives.

He said: “I thanked the President for the assistance extended by Pakistan to France in these difficult times.”

Raffarin said, terrorism was the scourge “we have to fight in the 21st century.”

President Musharraf told a questioner that the private sector would play a vital role in expanding trade ties between the two countries and they would undertake reciprocal visits to move forward towards that goal.

French Prime Minister Raffarin said Paris agrees that the way forward is focusing on areas of economic cooperation.

In reply to another question, President Musharraf said Pakistan believes that Iraq’s territorial integrity must be maintained and be governed by Iraqi people.—APP