JEDDAH, Sept 8: Pakistan and Saudi Arabia on Tuesday discussed the possibility of opening a Pakistani bank in Saudi Arabia, Pakistani sources told Dawn after meetings between Prime Minister Shaukat Aziz and the Saudi leadership.

Foreign banks are not allowed in the kingdom; hence no Pakistani bank is currently operating here. A Pakistani bank in the kingdom, sources said, would facilitate remittances through official channels.

The two countries agreed that in order to promote bilateral commercial relations, the Saudi Commerce Minister would visit Pakistan within a year. Investment opportunities in Pakistan were also discussed at the meetings.

It was felt by both sides that the two countries needed to transform their excellent political relations into dynamic commercial relations, the sources said. Mr Aziz and his entourage paid a courtesy call on King Fahd bin Abdulaziz on Tuesday.

Later, the prime minister and his delegation met Saudi Crown Prince Abdullah. Bilateral issues, the issues of Palestine, Iraq and Kashmir were discussed at the meeting.

The Pakistani side briefed the Saudi leadership on the ongoing composite talks between Pakistan and India. The two countries agreed on the continuity of policies as both Saudi Arabia and Pakistan were playing an active role in the current war against terrorism.

The Saudi leadership congratulated Mr Aziz on taking over as the prime minister of Pakistan and wished him success. The two sides noted that relations between the two countries were time-tested and would keep flourishing in time to come.

Mr Aziz also held a meeting with the Second Deputy Premier and the Defence Minister Prince Sultan. Later in the evening he met the Saudi finance minister. Earlier, while talking to a group of Pakistanis living in Saudi Arabia, Prime Minister Aziz announced that after successfully launching the Eurobond, Pakistan would now be issuing Islamic Bonds.

The prime minister said that merit and performance would now be the sole criteria for decision making for his government. He announced that before coming over to Jeddah he has issued letters to members of his cabinet to outline their goals and objectives for their tenure. After 12 months, the performance of the ministers would be evaluated, he declared.

He urged overseas Pakistanis to invest in Pakistan and assured them that their funds would get protection. A group of officials from the Jeddah Chambers of Commerce and prominent businessmen called on the Pakistani Prime Minister. Ways to promote bilateral trade between the two countries were discussed during the meeting. The two sides also exchanged views on issues pertaining to the investment opportunities in Pakistan.