THE HAGUE, Sept 27: Acting Dutch Prime Minister Gerrit Zalm on Monday urged Pakistan and India to reduce tension and find solution to outstanding issues plaguing their ties for over half a century.

"It is very important that relations between Pakistan and India get less tense and some kind of solution to their political problems is found," he told reporters with President Musharraf after bilateral talks.

Mr Zalm noted the 'positive' meeting between President Musharraf and Indian Prime Minister Manmohan Singh held recently in New York. President Musharraf, referring to talks with the Dutch leadership, said the two sides had an excellent exchange of views. Pakistan and Netherlands enjoyed commonality of views on world's issues, he added.

The Dutch prime minister is ailing and hospitalized and deputy prime minister is heading the government presently. The two sides discussed a wide range of issues, including the situation in Afghanistan and Iraq.

Mr Zalm expressed satisfaction over bilateral ties and hoped the president's visit would give further boost to economic and trade cooperation. He welcomed the steps the Pakistani government had taken to empower women and minorities, and lauded the introduction of the local government system in the country.

President Musharraf said he was looking forward to enhancement of economic, commercial and trade ties and an increased Dutch investment in Pakistan. He noted that some 19 Dutch companies were already operating in Pakistan with concerns like Philips and ABN Amro Bank becoming household names.

In reply to a question, the president said while the trade between Pakistan and Netherlands had increased by 22 per cent, it still remained below its potential. Referring to the $350 million exports Pakistan makes to the Netherlands, he asked the private sectors of the two countries to play their role in boosting the two-way trade.

AGREEMENT: Pakistan and the Netherlands have signed an agreement that will entitle Pakistanis residing in Holland to receive social security benefits in their own country.

The agreement, signed by Minister of State for Foreign Affairs Khusro Bakhtiyar on Monday, was the first to be signed by the Netherlands with any Asian country. It would benefit Pakistani nationals residing in the Netherlands if they decided to live in Pakistan on retirement.

After the implementation of this agreement, Pakistani nationals would enjoy the same benefits as those from the EU zone countries, Australia, Canada, Morocco, Turkey and the United States who are entitled to receive social security benefits in their own countries on retirement or disability.

The Social Security agreement would apply not only to the beneficiary but also to the members of the family so long as they reside in either of the two countries. The agreement allows old-age pension, survivors' benefits, sickness and maternity benefits and disablement benefits for employed and self-employed persons. -APP

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