ISLAMABAD, Nov 30: Pakistan and Iran have agreed on construction of a multi-million dollar gas pipeline between the two countries which would ultimately supply gas to India.

The visiting foreign minister of Iran Dr Kamal Kharrazi told a news conference on Friday that a joint technical committee to be constituted will prepare feasibility study and suggest to both the governments how to move ahead on the project.

A technical committee of the same nature already exists with India, he said.

The minister also hinted at resumption of wheat import from Pakistan and also to negotiate on quality rice from Pakistan.

He described his talks with President Musharraf and foreign minister Abdul Sattar as substantive which would enhance trade and business cooperation between the two countries.

It may be mentioned that Iran had cancelled an order of wheat import this year due to poor quality wheat supply and had refused to talk for resumption of the same.

He further stated that both the sides also discussed transfer of gas to Pakistan and to upgrade level of trade between the two countries.

A trade delegation from Iran is due to arrive here next Wednesday to open up talks on opening of new venues for investment in Pakistan and joint projects with Pakistan.

Both sides also discussed and agreed to enhance political and cultural cooperation as Kharrazi said a building will be constructed to accommodate the cultural activities of both the countries.

Negotiations will also be held on providing to Pakistan cargo wagons for its railways.

The 18-member high powered delegation which accompanied the Iranian foreign minister also held negotiations with their counterparts in ministries of commerce, Economic affairs, communication and defence.

Iran and Pakistan agreed to enhance their cooperation in field of defence during a meeting between Iranian deputy defence minister and acting defence secretary in ministry of defence.

Iranian deputy minister of defence Rear Admiral Hamid Naslpak was accompanied by his country’s foreign minister Dr Kamal Kharrazi, according to an official press release.

Hamid Naslpak is scheduled to visit Pakistan Ordnance Factories at POF Wah on Saturday and will call on chairman POF.

Mr Sattar on this occasion claimed that Pakistan had doubled its trade with Iran over the recent years.