ISLAMABAD, Nov 24: Pakistan and Indonesia on Thursday signed a comprehensive economic framework agreement for expanding economic cooperation and trade between the two countries.

The agreement was signed in the presence of President Pervez Musharraf and his Indonesian counterpart Susilo Bambang Yudhoyono. The two leaders expressed willingness to conclude a free trade agreement and start formal talks immediately.

Commerce Minister Humayun Akhtar Khan and his Indonesian counterpart signed the Framework Agreement on Comprehensive Economic Partnership (FACEP) on behalf of their respective countries.

A joint statement issued after the formal talks said both the nations had welcomed the signing of the pact and expressed their willingness to sign a free trade agreement (FTA) soon. To ensure a fast track strategy towards this goal, it was decided that an agreement on preferential trade agreement (PTA) would be negotiated in the near future by the ministries concerned of the two countries.

The two leaders noted that bilateral trade was steadily growing and was expected to exceed $600 million in 2005. They also welcomed a two-way trend of new investments.

However, it was agreed that there remained considerable untapped potential to diversify trade and further increase investments, taking advantage of the existing complementarities. Both the sides agreed to take measures to elevate further the bilateral trade from the current levels to at least $1 billion in the near future.

The two Presidents noted that the economic growth in Asia offered the two countries new opportunities for enhanced economic engagement for their mutual benefit. They reaffirmed their common commitment to their primary goal of ensuring broad-based and people-centred economic development designed to improve the quality of life of their people.

Pakistan and Indonesia view Asean as an important forum for regional peace, stability and economic prosperity. The Indonesian side appreciated Pakistan’s ‘sectoral dialogue partnership’ with Asean and said his country supported efforts towards Pakistan’s ‘full dialogue partnership’ with the association.