ISLAMABAD, Jan 18: Pakistan and Italy have agreed to collaborate in textiles, leather, marble and gems and jewellery sectors to enhance the volume of trade between the two countries.

The understanding was reached at separate meetings of Commerce Minister Humayun Akhtar Khan with Vice-Minister in-charge of External Trade, Adolfo Urso and National Security Adviser and Principal Foreign Policy Adviser to the Prime Minister, Giovanni Castellaneta.

An official announcement on Tuesday said the Italian minister agreed with the commerce minister that both the countries stood to gain by collaborating in textiles, leather, marble and gems & jewellery sectors and that there should be more interaction between enterprises of the two countries.

Mr Urso expressed his enthusiasm to visit Pakistan along with a delegation of businessmen and entrepreneurs in April this year to further bilateral trade ties. Mr Khan pointed out the highly vulnerable export base in Pakistan's economy and how important it was for the European Union to ensure the continuity of their understanding on the issue of market access.

Mr Urso assured Italy's unequivocal support to protect and promote the interests of Pakistan. With exports of $454 million and imports of $312.6 million (in 2003-04), Italy is Pakistan's 7th largest export destination and 15th largest source of imports.

Pakistan's exports to Italy, which stood at $209.27 million in 1999-2002, have doubled. The trade balance has been in favour of Pakistan since 1999-2000. Major exports to Italy are textile products, readymade garments, tanned leather, cotton yarn, carpets, synthetic textiles, sports goods and surgical instruments.

Major imports from Italy are iron and steel manufactures, machinery and parts, animal and vegetable fats and oil, medical and pharmaceutical products and chemical materials.