ISLAMABAD, May 25: Pakistan and Iran on Thursday decided to establish a joint investment company to be based in Karachi, with a capital of $25 million to promote trade and economic relations between the two countries.

It was decided in a meeting of Foreign Minister Khurshid Mahmood Kasuri with his Iranian counterpart Manouchehr Mottaki here at Foreign Office.

The Iranian foreign minister conveyed his country’s determination to join Pakistan in the expansion of road and railway infrastructure between the two countries and added that Iran had decided to establish a branch of Iranian Melli Bank in Karachi.

The two foreign ministers also discussed other aspects of bilateral relations between Iran and Pakistan and reviewed regional developments.

They discussed measures to promote regional cooperation within the Economic Cooperation Organisation (ECO).

The Iranian foreign minister is leading a delegation to participate in the 16th session of the Iran-Pakistan Joint Economic Commission.

Mr Mottaki conveyed to Mr Kasuri the Iranian decision to ratify the Preferential Trade Agreement (PTA) which was signed by the two countries in 2005. The PTA will contribute to expansion of bilateral trade and enable the two countries to meet the target of $1 billion in annual turnover.

Mr Kasuri welcomed the decision and felt that it would go a long way in achieving the old vision of RCD, which has now been adopted by the ECO.—APP