Zia and Prime Minister Shaukat Aziz, in order to achieve that goal, have decided to finalise Pakistan-Bangladesh Free Trade Agreement (FTA) by September this year. Aziz, at the talks, said, "we want more Bangladeshi imports and we will increase the trade level. I also want Pakistani entrepreneurs to invest in Bangladesh. We can cooperate in various fields, including IT economy, defence, security and population welfare."

Prime Minister Zia, in her talks in Islamabad, said "South Asia holds the potential to emerge as a global economic power house." "our two countries can play a major role in attaining that status for South Asia. I firmly believe, the potential for expansion of trade and economic relations between our two countries is immense. We hope, Pakistan will further liberalise its policies to enable our goods to enter the Pakistani market duty free."

She invited Pakistani entrepreneurs to invest in Bangladesh to profit from Dhaka’s good business environment. Khaleda Zia during her three day visit to Islamabad proposed to  Aziz and President Pervez Musharraf, " Bangladesh and Pakistan develop "strategic business partnership in a number of areas, including textiles, to boost trade and get mutual benefits." She said, "despite the closeness of our relations, the trade volume between our two countries is rather modest. It needs to be increased to $1billion  a year by 2007, she proposed to the Pakistani government leaders and the influential Federation of Pakistan Chambers of Commerce & Industry (FPCC&I).

A large group of businessmen, including Federation of Bangladesh Chambers of Commerce & Industry (FBCC&I) and leading industrialists, accompanying Zia, also discussed expanding trade with Pakistani Minister of Commerce Humayun Akhtar, and Pakistani businessmen. FPCC&I and BCC&I also signed also signed an agreement to promote bilateral trade and investment between the private sectors of the two countries.

The deadline for the $1billion trade target is 2007. "I am sure that with the complete commitment of all concerned we will be able to attain this target," Zia said. She also has proposed formation of an "active and effective" Joint Pakistan- Bangladesh Business Council which will contribute immensely to promotion of trade." "The global changes offer new challenges and opportunities to both the countries. The two can make concerted efforts jointly to take advantage of these global opportunities."

She specifically asked private sector of the two countries to join hands in the textile spinning and weaving. "Together they can secure a good share of the global apparel market and develop global brands of garments," she said.

Pakistan, after China and India, is one of the three major players in global textiles market after the onset of WTO regime and removal of international textiles quotas. Pakistan also is among the top cotton producing countries in the world, and has six decades of experience in textiles and apparel production.

The recently emerged apparel and ready-to-wear garments industry in Bangladesh is making a good mark in these fields on the back of its large manpower, especially women workers. Pakistan is on of the major suppliers of cotton to Bangladesh. Pakistan and Bangladesh, until 1971 were a single country, have a history of common experience and business bonds, including in textiles and jute manufactures. Pakistan has expanded cooperation with reputed French design firms and institutes to further upgrade its products, expand production and enlarge its global share further.

Bangladesh and Pakistan are members of the 7-nation South Asian Association for Regional Cooperation (SAARC) which, together with Bhutan, India, Maldives, Nepal, and Sri Lanka, was formed in 1980s on a proposal by Prime Minister Khaleda Zia’s husband. Saarc concluded South Asia Free Trade Agreement (Safta) in January 2004 to drastically cut tariffs and boost trade in the region. Safta is expected to be launched this year. Pakistani exports to Bangladesh rose from $ 115 million in fiscal 2003 to $ 195 million in 2004, and to $ 206 million in 2005. BD exports to Pakistan were $ 33 milli0n in 2003, rising to $ 50 million in 2004, and to $ 61.1 million in 2005.

Muhammad Saeed, President FPCC&I informed Zia and Bangladesh businessmen, " the private sector of the two countries can join hands in several areas, including textiles, communications, IT, tourism, hospitality services, trade and investment."

Mir Nasir Hussain, President FBCC&I urged " the political leadership of both the countries to take steps for removing barriers in the way of bilateral trade. He said, "the trade volume between Pakistan and Bangladesh is still modest. At present, the annual turnover is around $ 200 million which needs to be quickly expanded."     "WTO is a tool in the hands of the powerful and developed countries who are using it to twist the arms of the least developed and developing countries. Against this, we should join hands, boost our own trade, and move jointly in the global field," he said.

Pakistan already imports jute from Bangladesh, but Dhaka has proposed Islamabad should return to it for importing tea. Islamabad already provides preferential treatment for tea import from Bangladesh. It has also offered its pharmaceuticals which Bangladesh exports to 66 countries. Other items it proposed for export to Pakistan include ceramics, and melamine. Mir Nasir Hussain invited Pakistani entrepreneurs to invest in Bangladesh which has "investment friendly policies, and the government also provide special incentives."

The two governments signed four memoranda of understanding (MOUs) covering a major part of the economic and business activities These are: Bangladesh Foreign Minister M. Morshed Khan and Pakistani Commerce Minister Humayun Akhtar signed the MOU on cooperation in export promotion, joint ventures, quick visas for businessmen, and sharing market research.

M.K.Anwar, Bangladesh Agriculture Minister and his Pakistani counterpart Sikandar Bosan, signed an MOU on cooperation in agricultural research, science and technology, and joint ventures in production of fish, livestock, agri-business, tea, germ plasm, mangoes, bananas, watermelons, tropical fruits, good quality saplings and seeds, high yielding varieties of oranges, grapes, date palm, wheat, cotton, and pest management technologies.

Morshed and Pakistani Tourism Minister Ghazi Gulab Jamal, signed an MOU to promote joint ventures in tourism, establishment of beach resorts, heritage & amusement parks, hotels, and customs and visa facilitation, and training in hotel management and hospitality services.

* Morshed and Nouraiz Shakoor, Pakistani Minister for Science and Technology, signed an MOU to promote cooperation among Bangladesh Standards Testing Institute (BSTI) and Pakistan Standards and Quality Control Authority (PSQCA) to promote cooperation in standardisation, quality assurance, quality management system certification, laboratory testing and accreditation system, personnel training and exchange of experts.

Much hope now rests on implementation of Pakistan-BD Free Trade Agreement that will be launched by September, as the two Prime Ministers believe: this epoch-making decision will go a long way in promoting free trade and investment to the entrepreneurs of the two countries."