RAWALPINDI, Jan 25: Pakistan and the North Atlantic Treaty Organisation (Nato) have finalised a draft agreement on transit and logistical facilities for Nato forces stationed in Afghanistan.

The draft was given a final shape at a two-day meeting between the two sides which concluded here on Thursday. The meeting was co-chaired by Mr Baldwin De Vidts, head of Nato's legal office and Rear Admiral Tanveer Faiz, Additional Secretary of the Ministry of Defence.

Official sources told Dawn that technical details of the proposed agreement had been worked out and differences on various aspects had been resolved.

They said Nato's demand seeking tax exemption on arms and ammunition and other equipment transported to Afghanistan through air and land routes had been rejected.

The Nato had also requested that its troops should be allowed to carry weapons during their stay in Pakistan on way to Afghanistan but that too has been turned down, they said. They said Nato troops would not enjoy diplomatic status during their transit stay in Pakistan.

They said the draft agreement would be sent to the cabinet for formal approval. The Nato forces would not be allowed to use Pakistani soil for military operations.

Answering a question, they said the Nato will appoint a liaison officer in Pakistan, but had no plan to set up a permanent observatory in the country.

The Nato was also considering setting up a military school for Pakistan Army officers in Europe with the basic aim to develop better coordination between the two forces.