WASHINGTON, April 20: Pakistani and US officials discussed economic and financial issues at a meeting at the Treasury Department on Friday afternoon, and signed a Memorandum of Understanding formally setting up a joint economic forum.

The MoU was signed by Finance Minister Shaukat Aziz and US Treasury Secretary Paul O’Neill, and the two led their respective delegations in talks that followed the signing ceremony.

Neither Mr Aziz nor Mr O’Neill talked to reporters who had gathered to watch the signing ceremony. A short press release handed out to journalists said global and regional economic and financial developments and developments in the economic field in Pakistan and the United States were reviewed. The two sides also exchanged views on efforts to increase global economic growth and discussed the economic reform programme being implemented in Pakistan “to support more rapid, broad-based and job-creating growth”.

It is believed that Mr Aziz gave a rundown of Pakistan’s economic efforts and its own perspective on issues like money laundering, which has become a key US concern since September 11. Questions such as Pakistan’s need for greater access to US markets and debt relief were not raised because these fall within the purview of the commerce department and the office of the US Trade Representative, but efforts are said to be under way to also institutionalize contacts with these two arms of the US government.

The joint forum will meet once a year, or as circumstances warrant. It is an outcome of the agreements reached during Gen Pervez Musharraf’s visit to Washington in February and talks with President George Bush.

The forum is described as “an important vehicle for the exchange of ideas on important economic and financial policy matters”, and is considered by Pakistani diplomats as significant because it marks the first bilateral arrangement of its kind in the post-Cold War era.

But its progress will be monitored for two years to see whether it should be continued. Meetings will be held at a convenient location and, where possible, in conjunction with other bilateral or multilateral meetings.

Mr Aziz is in Washington to attend the annual spring meeting of the World Bank and the International Monetary Fund that began on Saturday.