"We would like to sign an FTA with Bangladesh. We are in favour of providing preferential treatment to each other to reap quick results and increase the trade to one billion dollars by 2007," Dr Salman Shah, Finance, Revenue, Economic Affairs and Statistics advisor to Pakistan prime minister, told a press briefing in Dhaka yesterday.

Shah, who led a 12-member high-powered Pakistani delegation, was addressing the press after wrapping up the two-day eighth meeting of joint economic commission (JEC). The two countries signed several agreements to promote bilateral trade and investment.

A joint working group is being set up to monitor the progress of different agreements, he said adding that the group will sit at least every six months. "However, if necessary, it will meet more."

The two countries also agreed to enhance trade to one billion dollars by 2007, the advisor said. "We have agreed on a detailed plan of action to achieve this target."

There was also agreement to enhance flights and establish a direct shipping link between the two countries to strengthen trade and economic relations, Shah added.

Besides, Pakistan offered to increase duty free import of Bangladesh tea to 15,000 tonnes, he said.

"We will move very fast on these areas and by this December we would like to open up markets for some products. But we need to build infrastructure to increase the trade, " the Pakistani advisor said.

Speaking at the briefing, Bangladesh Commerce Minister and Co-chair of the JEC meeting Altaf Hossain Choudhury said, "We have signed the memoranda of understanding that would help increase the bilateral trade faster in the coming days."

Bangladesh listed jute goods, pharmaceuticals, readymade garments, melamine and porcelain products, soap and plastic products as potential products for exporting to Pakistan.

Both the sides also agreed to encourage investment in computer software development and IT sector, telecommunications, textiles and jute goods, electronics, light engineering, leather, agro-based industries, agriculture equipment and machinery, tourism and marble stone.

Besides, Bangladesh requested Pakistan to provide support for detail engineering of small-scale hydropower projects in particular.

The last JEC meet was held in Islamabad in 1998.