DHAKA, Nov 16: Pakistan and Bangladesh on Sunday began trade talks in Dhaka, with Islamabad agreeing in principle to give Dhaka preferential treatment in view of its status as a least-developed country under the framework of a proposed free-trade agreement.

The first day of negotiations led to a breakthrough on preferential treatment, a demand Bangladesh had also raised in talks with India and Sri Lanka.

In view of the inequalities “of the two economies, Bangladesh will be given special favour,” Jafar Iqbal Qadir, leader of the Pakistan team, told journalists.

Dhaka and Islamabad are also reported to have reached a broad-based consensus on most issues concerning the agreement at the joint secretary-level talks at the commerce ministry.

Official trade negotiators paved the way for a free-trade agreement on the basis of a negative list of commodities from both sides. A specific date for the next round of talks — some time in January 2004 — would be finalised on Monday, the concluding day of initial discussions.

Pakistan’s joint-secretary commerce said broader parameters for the agreement’s framework had been defined.