ISLAMABAD, Oct 8: Pakistan-Austria on Friday agreed to enhance cooperation in petroleum and natural resources, commerce, industries and production and power generation information technology and telecom , food, agriculture and livestock, tourism, environment, education, water and power, communication, science and technology and railways.

The agreement was reached in third session of Joint Working Group of the two countries, an official press release said. The Austrian delegation was led by the vice minister for economic affairs and labour, Josef Mayer. Ms Hina Rubbani Khar, minister of state for economic affairs represented the Pakistani side.

Mr Josef appreciated the economic reforms introduced by Pakistani government during the last five years. Pakistan, he said, now offered great incentives and conducive environment for investment. He said there was a great scope of enhancement of mutual cooperation between the two countries in a number of sectors.

During their stay in Pakistan, he said, his delegation, which mostly comprised private sector businessmen, would explore new avenues for cooperation. Speaking on the occasion, Ms Khar said the warm and cordial relations that existed between the countries would provide a good basis for further improvement in the economic cooperation.

Ms Khar briefed the delegation about wide ranging structural reforms, which included tax, trade, tariff, financial sector and capital market reforms, deregulation and privatization as well as civil services and administrative reforms.

Austria's financing in the railways sector also came under discussion. Pakistan also made a request to the Austrian government to further soften the terms and condition of their future loan so that fresh proposals for investment in infrastructure development and rolling stock procurement could be submitted.

The meeting also observed that relations between Pakistan and European Union had significantly improved in the post 9/11 scenario, largely due to positive perception of Pakistan's reforms programme, the commitment to a roadmap for restoration of democracy and the holding of the local government elections.