ISLAMABAD, Sept 1: The Federal Cabinet on Monday approved initiation of negotiations with Bangladesh for a free trade agreement for promotion and expansion of bilateral trade between the two countries which enjoy brotherly relations.

The Cabinet, which met here with the Prime Minister in the chair, also approved conclusion of an agreement with Sri Lanka to institutionalise the bilateral cooperation between the two countries in the fields of security, narcotics, human trafficking and training of the law enforcement personnel.

The Cabinet approved to establish Hydrocarbon Development Institute of Pakistan as an autonomous organization for the purpose of research an development in the field of hydrocarbons.