ISLAMABAD, July 25: Pakistan and Sri Lanka on Thursday agreed to pool skills to exploit manufacturing potentials for producing exportable goods.

Sri Lankan Minister for Trade, Commerce and Consumer Affairs Ravi Karunahayake held a meeting with Finance Minister Shaukat Aziz and discussed with him possibilities of increasing economic cooperation between the two countries.

Aziz said Pakistan could benefit from Sri Lankan experience in tourism, gems and jewels and tea production. And Sri Lanka could increase import from Pakistan in agriculture, electronic and textiles.

Mr. Ravi complimented President Pervez Musharraf for knitting around professional team who have introduced far reaching reforms to turn around country’s economy.

He said Sri Lanka was going through a similar process of reforms and could benefit from Pakistan’s experience to achieve economic stability, peace and promote bilateral trade between two countries. He said that free trade agreement would go a long way in promoting economic relations between Sri Lanka and Pakistan.

Earlier, Shaukat Aziz said that free trade was a good omen for increasing bilateral cooperation. It would, in turn, increase regional economic cooperation and compliment globalization.

However, he pointed out that fundamental ingredient for increasing trade was conducive peaceful atmosphere which could only be achieved in a tension free atmosphere in the region.

“A peaceful settlement of the Kashmir issue is critical for enhanced cooperation in SAARC Region.” He said the economic potential under the umbrella of SAARC needed to be tapped for mutual benefit for the people of member canaries. He said Pakistan enjoyed close bilateral relations with Sri Lanka.

The finance minister said that Pakistan was on the path of financial, structural and administrative reforms. As a result, Pakistan has attained economic stability, high growth rate, gross foreign exchange reserves were around $7 billion and free exchange rate has been introduced.

However, he said, Pakistan needed to stay the course of reforms to further consolidate these gains and pass on their benefit to the people. He said Pakistan needed to fight poverty, create jobs and attract more investment. He said that textile sector, which was a major part of the manufacturing sector, was expanding rapidly to meet post-2005 challenges.

The two sides agreed that market access for the developing countries was the best way to help them stand on their feet, as market access generates economic activity, creates jobs, reduces deficit and helps fight poverty.

He said that Pakistan has successfully negotiated market access with the European Union and was in a process of dialogue with the United States. He stated that market access was more important than aid as it created long term sustainable benefit.