ISLAMABAD, March 18: Pakistan would extend $5 million soft-term loan to Bangladesh to expand and modernize its sugar industry.

An official statement said here on Tuesday the offer was made by industries and production minister Liaquat Ali Khan Jatoi to Prime Minister of Bangladesh Begum Khaleda Zia in Dhaka on Tuesday.

The minister, who called on the prime minister of Bangladesh, conveyed Pakistan’s offer of $5 million assistance for the modernization and expansion of sugar mills in Bangladesh. Upon the utilisation of that amount, Pakistan would be willing to further extend the facility.

Khaleda Zia welcomed the offer and also recalled with appreciation Pakistan’s decision last year of granting duty free access to Bangladeshi jute and tea.

The minister renewed the invitation of President Pervez Musharraf to Prime Minister Begum Khaleda Zia to visit Pakistan. Prime Minister Jamali also looked forward to her visit, he told the BD leader. The prime minister said she would be happy to visit Pakistan at mutually convenient dates.

Liaquat Jatoi had an hour-long exchange of views with his Bangladeshi counterpart M.K. Anwar in which both sides underscored the need for further enhancing cooperation in the industrial and commercial fields.

They identified the areas where good prospects existed for mutually beneficial cooperation. The two ministers agreed that joint ventures in textiles, fertilizers and paper industries should be encouraged.