ISLAMABAD, Aug 20: Pakistan and Thailand have agreed to expand bilateral relations by strengthening economic and trade ties.

“We are satisfied with the progress made in recent years in the political, economic and defence spheres. We agreed to further consolidate and expand this partnership for the mutual benefit of our two peoples,” Prime Minister Nawaz Sharif told the media after his meeting with visiting Thai Prime Minister Yingluck Shinawatra on Tuesday.

The two sides agreed to double their bilateral trade volume to $2 billion in five years and establish a Joint Trade Committee (JTC) and a Joint Business Council (JBC) to foster business-to-business contacts.

On the sidelines of the two-day visit of the Thai premier, the two sides are holding important business interactions.

Business delegations of both the countries met on Monday, while the inaugural session of the JTC was held on Tuesday to identify areas of future collaboration.

The two countries intend to eventually move towards a free trade agreement.

Mr Sharif invited Thai companies to invest in Pakistan.

“We have invited Thai private businesses to invest in Pakistan in various sectors, including infrastructure development, energy, auto parts manufacturing, food processing, packaging, gems and jewellery as well as tourism and hospitality,” Mr Sharif said.

At least three Thai companies — Charoen Pokhpand (CP) Group of companies, Uretane Group and Siam Chemical Group — have already invested in various projects in Pakistan.

Mr Sharif emphasised on building people-to-people contacts and hoped for an increase in religious tourism from Thailand to Buddhist sites in Pakistan.

Ms Shinawatra underscored the importance of bolstering bilateral ties and cooperation.

Paying tribute to Pakistan’s fight against terrorism, she said: “We have common concern on the challenge of extremism and terrorism and Thailand respects the sacrifices given by the government and people of Pakistan in dealing with these challenges.”

Mr Sharif has been invited to visit Thailand.