ISLAMABAD, Feb 18: Pakistan and Malaysia have agreed to increase cooperation in counter-terrorism efforts and reaffirmed their commitment to promoting bilateral economic and trade ties, a joint communique issued on Friday said.

The two countries agreed to "increase cooperation in the fields of defence through interactions and exchanges between the relevant ministries". The communique was issued at the end of a four-day visit of Malaysian Prime Minister Abdullah Ahmad Badawi.

"The two countries underlined the importance of international cooperation in the fight against terrorism and reaffirmed their countries' commitment to combating terrorism and other trans-national crimes in a comprehensive manner," it said.

"Pakistan and Malaysia value highly their mutually beneficial cooperation, which has been strengthening and broadening at the strategic, political, economic and cultural planes," it said.

At the strategic and political levels, the two countries agreed to make every effort to develop their relations and multi-faceted cooperation for their common benefit.

"In this regard, each side shall be guided by generally accepted principles of international laws as well as traditions of friendly relations between their two countries on the basis of mutual respect for national sovereignty, non-interference in each other's internal affairs, equality and democratic principles of each country," the statement said.

The two countries reaffirmed their commitment to implementing the purpose and principles of the United Nations charter. "Pakistan and Malaysia shall strengthen mechanisms of mutual consultation and cooperation by instituting regular working-level consultations between their respective foreign ministries," it said.

Malaysia appreciated Pakistan's resolve to enhance its linkages with the Association of South East Asian Nations and expressed support to Islamabad's bid to establish full dialogue partnership with Asean.

The decision on Pakistan's status will be taken by Asean members through consensus. The two countries agreed to promote investment and trade, including direct trade. They will form a joint study group to establish comprehensive economic partnership and launch negotiations on a free trade agreement during the current year.

They agreed to establish a joint business and investment council comprising the private sectors of the two countries. They agreed, in principle, to promote the establishment of joint ventures in public sector projects with the participation of the private sectors of both the countries.

The two countries will encourage joint ventures and promote closer cooperation between their private sectors. In particular, Malaysia would like Pakistan to facilitate downstream activities of palm oil and palm products.

The two countries will promote cooperation in agriculture, agro-based industries, Halal food industry and traditional medicine. Malaysian companies will be encouraged to invest in infrastructure, construction and housing sectors in Pakistan.

The statement said the two countries would explore, develop and conclude arrangements for mutually beneficial cooperation in the fields of information technology and telecommunications.

They agreed to develop and promote activities and programmes to enhance people-to-people contacts. It was agreed to designate Pakistan as a source country for export of manpower to Malaysia.

The two countries will increase frequency of flights between them. They agreed to have further discussions on the establishment of a joint investment company. They will increase cultural contacts and student exchanges and facilitate collaboration among academic institutions.

The two countries will promote cooperation in science and technology through sharing of information and expertise and joint research, as well as jointly organize seminars bringing together their scientific community. It was decided that the relevant officials from both the sides would meet to expedite implementation of the decisions. -APP