TRIPOLI, May 1 President Asif Ali Zardari and Libyan leader Moammar Qadhafi on Friday vowed to bolster bilateral ties and agreed to boost economic cooperation between the two countries.

President Zardari and Mr Qadhafi are reported to have discussed a host of issues, including ways to increase bilateral trade, set up joint ventures and boost the quantum of investment. They also discussed regional and other issues of mutual interest.

They also agreed to increase collaboration in energy resource exploration and manpower exchange. The two leaders were later joined by members of their respective delegations. President Zardari said there was a huge scope for investment in infrastructure development, railways, housing and oil and gas sectors.

Mr Qadhafi said Libya needed Pakistan's help to improve its banking sector and set up educational training facilities.

President Zardari briefed the Libyan leader on Pakistan's efforts to curb terrorism and extremism and the country's role in maintaining peace in South Asia.

The two leaders also discussed the regional security situation, especially with regards to Afghanistan, Iraq and the Palestine.

Expressing concern over challenges being faced by the Ummah, Mr Qadhafi stressed the need for making the Organisation of Islamic Conference more effective.

Appreciating Libya's help for victims of the 2005 earthquake victims, President Zardari mentioned the services of Saif Al Eslam Qadhafi, the president of the Qadhafi Development Foundation, who was awarded Sitara-i-Quaid-i-Azam.

Pakistan's ambassador to Libya Jamil Ahmad Khan said the visit was aimed at “improving economic ties between the two countries”.

Libya's official JANA news agency said that Mr Qadhafi and Mr Zardari discussed “developments in Pakistan” and other regional problems.

According to officials, Libya and Pakistan are likely to sign seven agreements — including accords in the economic, political, security and cultural sectors — during President Zardari's visit.

In a meeting with Prime Minister Dr Al Baghdadi Ali Al Mehmudi, President Zardari invited the Libyan government to invest in Pakistan.

President Zardari said Pakistan and Libya could benefit from each other's potential through joint ventures in defence production, labour and manpower, education and information technology.

He informed the Libyan prime minister that his government intended to set up special economic zones for foreign investors, endeavouring to create a greater investor-friendly environment.

Prime Minister Baghdadi said that Libya was interested in increasing trade with Pakistan. —Agencies