ISLAMABAD, Sept 15: Pakistan and Thailand have agreed to enter into the comprehensive economic partnership (CEP) that would finally lead to a free trade agreement between the two countries in goods and services.

An understanding to this effect was reached here on Wednesday at a meeting between Commerce Minister Humayun Akhtar Khan and Thai Trade Representative Prachuab Chaiyasan. Led by Mr Chaiyasan, the Thai delegation comprised the representatives of public as well as private sectors.

There was a consensus of opinion that the present level of trade between the two countries was much below their potential and it was in the interest of both the countries to take measures to at least double the trade in the short-run.

The Thai representative observed that Pakistan was a gateway for central Asian states, China and the Middle East, whereas Thailand was also strategically placed in East Asia and was a gateway for emerging economies of Asean states.

It was decided that both the countries would enter into the CEP leading to a free trade agreement in goods and services. The technical meetings will be held shortly to identify the items for early harvest.

The commerce minister apprised the Thai delegation of the trade and economic liberalization carried out by Pakistan in recent years. He said Pakistan offered very conducive environment to attract foreign investment in various sectors, particularly textile, housing, cement, telecom and electronics.

It was agreed that a joint economic commission would be established to enhance bilateral trade and economic relations. It was realized by both the sides that although the relationship between the two governments was satisfactory, yet people to people contact was needed to be greatly enhanced. The commerce minister proposed a "business forum" between private sectors, to which the Thai side also agreed.