Pakistan, Iran to set up joint investment company

Pakistan and Iran Thursday decided to establish a joint investment company in Karachi with a capital of 25 million U.S. dollars to promote trade and economic relations between the two countries, the Pakistan news agency APP reported.

Pakistani Foreign Minister Khurshid Mahmood Kasuri and his Iranian counterpart Manouchehr Mottaki took the decision during a meeting in Islamabad at the foreign office.

The Iranian foreign minister conveyed his country's determination to join Pakistan in the expansion of the road and railway infrastructure between the two countries. He said that Iran had decided to establish a branch of Iranian Melli Bank in Karachi, the APP said.

The two foreign ministers also discussed other aspects of bilateral relations and reviewed regional developments, including the situation in Iraq and Afghanistan, as well as other international issues of mutual concern.

They discussed further measures to promote regional cooperation within the Economic Cooperation Organization (ECO), of which both countries are founding members.

Mottaki also told Kasuri the Iranian decision to ratify the Preferential Trade Agreement (PTA), which was signed by the two countries in 2005.

The PTA will contribute to expansion of bilateral trade and enable the two countries to meet the target of 1 billion U.S. dollars in annual turnover.

Kasuri reiterated that Pakistan's established position, saying that the Iranian nuclear issue should be resolved through diplomatic means alone. He added that resort to coercive methods would only endanger regional security and stability.

Kasuri underlined the need for flexibility by all sides to achieve a mutually acceptable solution to the issue.

The Iranian minister is leading a delegation to attend the 16th session of the Iran-Pakistan Joint Economic Commission in Islamabad.

Source: Xinhua