Tue, 16 Dec 2003

Pakistan, RI to sign trade, counterterror pacts

Associated Press, Islamabad

The leaders of the world's two largest Muslim countries, Pakistan and Indonesia, held talks Monday and were set to witness the signing of trade and counterterrorism agreements, the state news agency reported.

But an assassination attempt the night before on Pakistani President Pervez Musharraf overshadowed the meeting with Indonesian President Megawati Soekarnoputri, who arrived on Sunday for her first visit to the country.

Two powerful bombs planted under a bridge in Rawalpindi, a city near Islamabad, exploded shortly after Musharraf's motorcade passed over it on Sunday evening.

No one claimed responsibility for the attack, which caused no injuries, but police went on alert across Pakistan.

On Monday, Megawati held talks with Musharraf in Islamabad on a range of issues including the fight against terrorism, the situation in South Asia and the profile of Islam in the world, the state Associated Press of Pakistan reported.

On Tuesday, the two countries are expected to sign a memorandum of understanding on countering terrorism and a trade agreement, and begin the process of setting up a bilateral system of preferential tariffs, the report said.

"We would like to gradually move to establishing a free trade area between Pakistan and Indonesia," Musharraf was quoted as telling the Indonesian leader.

Pakistan and Indonesia have friendly relations and bilateral trade worth about US$350 million in 2002, heavily in Indonesia's favor.

Indonesia is currently the chair of the 10-nation Association of Southeast Asian Nations, and in her talks with Musharraf, Megawati said that Asean countries - potentially a big market for Pakistan - support its hopes of becoming a full dialogue partner of the grouping, APP reported.

In recent months, Indonesia and Pakistan have taken steps to increase cooperation in fighting terrorism.

Megawati's visit comes days after Pakistan deported six Indonesian militants, including the brother of Southeast Asia's alleged top militant, Hambali. The men are suspected of having links with the al-Qaida-linked group Jemaah Islamiyah, blamed for last year's Bali bombings that killed 202 people.

The men were studying at a seminary in the southern city of Karachi when they were arrested in September.

It is Megawati's first visit to Pakistan since she took office in July 2001. She was scheduled to hold talks with Prime Minister Zafarullah Jamali later Monday.

Musharraf traveled to Indonesia after seizing power in a bloodless coup in 1999.

Pakistan has said Megawati's visit will help cement relations between the two countries, which have the world's largest Muslim populations. Indonesia has 210 million people, and Pakistan has 140 million.