ISLAMABAD, Nov 5: Prime Minister Shaukat Aziz and his Malaysian counterpart Abdullah Ahmed Badawi agreed here on Sunday on setting up of a Pakistan-Malaysia investment company to encourage investment in the two countries.

The two leaders announced that a Free Trade Agreement (FTA) would be signed between them by the end of this year to boost trade and economic relations.

“I am satisfied with the outcome of talks with Mr Aziz and hope that bilateral relations between the two nations would further be expanded and deepened in coming days,” the Malaysian leader said at a press conference he and Prime Minister Aziz addressed following their one-to-one meeting and delegation-level talks.

Mr Aziz said Pakistan and Malaysia had agreed on setting up a joint investment company to provide institutional framework for investment in each other’s country. Under the company, Pakistani and Malaysian investors will be able to invest in each other’s country.

Pakistan and Malaysia have multi-faceted cooperation in the defence field. A Malaysian defence delegation would participate in the annual defence exhibition to be held in Karachi this month.

Mr Aziz said Malaysia had excellent universities and Pakistan would like to benefit from their experience by sending its students there.

The two countries have a trade volume of around $700 million which, Mr Badawi hoped, could reach the $1 billion mark.

Referring to the proposed joint investment company, he said that arrival of Pakistani companies in Malaysia would be a catalyst in enhancing investment in the two countries.

He welcomed Pakistan’s support for the World Islamic Economic Forum (WIEF) which was holding its second conference in Islamabad.

Both leaders were upbeat about the success of the WIFE session in which 600 delegates, some from non-Muslim countries, are participating.

The Malaysian leader said he had also briefed Prime Minister Aziz on the situation in southern Thailand.

About southern Philippines, he said Malaysia had asked for an international monitoring group to be there to resume talks which he hoped would help improve the situation.

He said Malaysia would continue to export labour from Pakistan as the opportunities arose.

Mr Aziz, expressing satisfaction, said that 15,000 Pakistani workers were employed in Malaysia. He said export of manpower was always demand-driven but noted that the two countries had made good progress in this area.

Answering a question about the possibility of celebrating Eid on the same day all over the Muslim world, the Malaysian premier said his country had adopted a formula to calculate a date for moon-sighting.

The two leaders also discussed how Zakat could be used to reduce poverty. Pakistan would send a ministerial delegation to a conference being held in Malaysia later this month on the issue.

Earlier, a contract agreement was signed between the National Highway Authority and a Malaysian construction company for consultation on three parts of National Highway in Balochistan.

Also, a Memorandum of Understanding was signed between the National Institute of Banking and Finance (State Bank of Pakistan) and the International Centre for Education in Islamic Finance (State bank of Malaysia).