"Despite our fraternal relations, our two countries are yet to tap the full potential of economic cooperation...We agree on the need for further increase in trade and investment. Only thing we need to do now is to swing into action on the basis of a realistic plan," she said at a reception hosted by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) at Hotel Serena.

FPCCI President Chaudhury Muhammad Saeed and FBCCI President Mir Nasir Hossain also spoke on the occasion.

A memorandum of understanding (MoU) between the FPCCI and the FBCCI was also signed during the function to enhance cooperation between the apex trade bodies of the two countries.

The two chamber presidents signed the agreement for their respective sides in presence of Bangladesh Prime Minister Khaleda Zia and her three cabinet colleagues as well as Pakistani Minister for Social Welfare and Special Education Jobayda Jamal.

Khaleda said Bangladesh has a large market for composite textile mills to meet the growing demand of fabrics for the country's vibrant industry.

Mentioning Dhaka's duty-free market access to EU, Canada, Australia, New Zealand and Norway, she said Pakistani entrepreneurs could take advantage of this by setting up industries in Bangladesh, either independently or in joint venture.

"Pakistani entrepreneurs can join hands with their Bangladeshi counterparts, and they can together secure a good share of the global apparel market, they may also develop global brands of garments. I would urge you to look into these prospects seriously," she said.

On the government's new policy regime and new institutional support, the prime minister said FDI flow in Bangladesh is encouraging and the macro-economic indicators are showing positive signs.

Saying that Bangladesh government offers attractive incentives for overseas businessmen, she hoped that the business houses from brotherly Pakistan would avail this opportunity.

On the two-way trade which she said is rather modest, Khaleda suggested concerted efforts to take it to a respectable level and hoped that target of $ 1 billion bilateral trade set by the Bangladesh-Pakistan Joint Economic Commission could be reached by 2007 with full commitment of all concerned.

Recognising the private sector as the prime mover of economic development, she said the Saarc Chambers of Commerce and Industries (SCCI) can also play a pro-active role in promoting trade and commerce, and act as a catalyst between the private sectors and the national governments of the countries in the region.

The prime minister hoped to see an active joint business council between the apex chambers of Bangladesh and Pakistan ---FBCCI and FPCCI. This forum will no doubt contribute immensely to the promotion of bilateral trade, she said.

Khaleda Zia, current Saarc chairperson, said the Saarc member states also focussed on economic cooperation. She expressed the optimism that decisions taken at the 13th Saarc Summit in Dhaka would be implemented without wasting time for the prosperity of the teeming millions of South Asia.