Malaysia and Pakistan have signed a trade pact which will kick off in January with tariff cuts for agricultural and industrial products, the trade ministry said Monday.

"It (the trade pact) will further strengthen trade and investment and bilateral economic and industrial cooperation on a long term basis between Malaysia and Pakistan," Malaysia's ministry of international trade and industry (MITI) was quoted as saying in a statement.

The trade agreement signed last Thursday with Pakistan is Malaysia's first pact with a member of the Organistion of Islamic Countries.

MITI said the agreement encompasses trade liberalisation in goods and services, investment, as well as in intellectual property protection, construction, tourism, healthcare and telecommunications.

Malaysia will eliminate import duty by 2012 on 74.5 percent of tariff lines and reduce import tariffs over a period of five to seven years on 18 percent of tariff lines.

In turn, Pakistan will eliminate duties by 2012, on 43.2 percent of tariff lines involving agricultural and industrial imports from Malaysia.

Pakistan will also reduce import duty on seven palm oil tariff lines.

Among the products that will benefit from duty elimination and reduction include fruits, natural rubber, leather, tea, cocoa and coffee, processed food, machinery and equipment, chemical products, plastics and pharmaceuticals.

Last year, Malaysia's total trade with Pakistan amounted to 3.3 billion ringgit (991 million dollars) comprising exports worth 3.1 billion and imports of 217 million.

Trade during January to September 2007 amounted to 3.2 billion ringgit comprising exports of 3.0 billion and imports 227.3 million, it said.

Major exports to Pakistan last year were palm oil and products, chemical products, electrical and electronic products and textiles.

Meanwhile, major imports from Pakistan in 2006 were textiles, fresh and frozen seafood, cereals including rice, electrical and electronic products.