Pakistani Prime Minister Shaukat Aziz held talks with Prime Minister Abdullah Ahmad Badawi today at the start of a three-day visit which is expected to bring a free trade agreement closer to reality.

Aziz, accompanied by seven cabinet ministers in a delegation of 25, is reciprocating a visit by Abdullah to Islamabad in February during which the plan for a trade agreement was announced. Formal negotiations are scheduled to begin by December.

Total trade between the two Muslim countries in 2003 was US$713 million, with US$623 million going to Malaysia, mainly for palm oil. Malaysia imports rice and textiles from Pakistan.

Malaysia is also actively involved in oil and gas projects, construction and communications in Pakistan, and a member of Aziz's delegation said they were hoping to encourage further investment in real estate and tourism.

The Malaysian government has announced plans to recruit 100,000 Pakistani workers amid an acute labour shortage caused by a crackdown on illegal immigrants that sent hundreds of thousands of illegal workers fleeing the country earlier this year.