WASHINGTON, Nov 30: The United States and Pakistan agreed on Tuesday to strive harder to forge a bilateral investment pact that could set the stage for negotiations to establish a free trade agreement.

United States Trade Representative (USTR) Rob Portman and Pakistan Commerce Minister Humayun Akhtar Khan “committed to redoubling efforts to conclude” the bilateral investment treaty, USTR spokeswoman Neena Moorjani told AFP after the talks.

She said the treaty “can play an important role in strengthening Pakistan’s economy which creates new opportunities for exporters and investors in both economies as well as bolster our joint efforts on terrorism.”

Mr Khan also raised with Portman Pakistan’s desire to commence free trade negotiations, Moorjani said.

Both sides have been holding discussions on a plethora of trade issues under their Trade and Investment Framework Agreement (TIFA).

Mr Khan told reporters that a possible visit by President George W. Bush to Pakistan next year could provide an impetus for signing the bilateral investment treaty.

“I think some VVIP movement” could prod the officials into speeding up the conclusion of the agreement, he said.

Musharraf had urged Bush during talks in December 2004 and in September this year to start negotiations for a free trade pact with Pakistan.

“President Musharraf feels very strongly that the strong political ties between the United States and Pakistan should cover the economic area as well,” Mr Khan said.

“He feels the two issues are interlinked,” Mr Khan said, adding that market access to the United States for Pakistan’s exports was essential to curb poverty.—AFP