The Prime Minister was talking to the First Deputy Prime Minister of Azerbaijan, Yagub Eyyugov who called on him at the Prime Minister House this afternoon along with  Yavar Jamalov, Minister for Defence Industry, Professor Dr. Ali Abbasov, Minister for Communication and IT, Professor Dr. Misir Mardanov, Minister for Education, Khalaf Khalafov, Deputy Minister of Foreign Affairs and Dr. Eynullah Madatli, Ambassador of Azerbaijan to Pakistan.

The Azerbaijan delegation participated in the Joint Ministerial Commission meeting that concluded in Islamabad on Wednesday.

The Prime Minister said Pakistan attaches great importance to  its ties with Azerbaijan which are historic and rooted in a common faith, shared values and perceptions.

Pakistan, he said, is keen to strengthen its ties with Azerbaijan in all fields including energy, IT, telecom, defence, security, science and technology, education trade and investment.

Eyyubov said that Azerbaijan greatly values its relations with Pakistan and highly appreciates Pakistan's support on the Nagorno Karabakh issue. He said Azerbaijan supports Pakistan's position on Kashmir.

The Prime Minister apprised the visiting dignitary of the ongoing process of composite dialogue with India.

He said that Kashmir is the core issue between the two countries and Pakistan is keen to settle it peacefully in keeping with the wishes and aspirations of Kashmiri people.

He said that durable and permanent peace between the two countries can change the destiny of the people of south Asia. The Prime Minister appreciated the consistent and principled support extended by Azerbaijan to Pakistan on the Kashmir dispute.

Giving an overview of the country's economy the Prime Minister said Pakistan is keen to attract foreign capital and investment and provides a level playing field to both Pakistani and foreign investors.

As a result of the economic reform agenda based on privatization, deregulation and liberalization the size of the economy and per capita income has doubled in the last seven years, he said, adding  that Foreign Direct Investment which did not go beyond $300 million  per year in the past is expected to cross $5 billion in the current financial year.

The two sides agreed on the need to promote interfaith harmony through a process of dialogue among the adherents of different faiths. This is the only way to bridge the growing religious divide, the Prime Minister said.

He said Pakistan admires the impressive economic gains achieved by Azerbaijan especially the development of its energy resources and laying of oil and gas pipelines between Azerbaijan and Turkey.

He said that Pakistan is also planning to set up a gas pipeline with Iran and India as its energy requirements are growing exponentially by 10 to 12 per cent per year. He said that energy security is critical for sustained economic growth and development.

The Prime Minister also apprised the visiting dignitary of President Musharraf's initiative to resolve the Palestine issue.  The new initiative has been well received and supported by all the countries recently visited by the President, he said.

Eyyugov said that it is heartening to see the economic turnaround achieved by Pakistan under President General Pervez Musharraf and Prime Minister Shaukat Aziz, who are the true friends of Azerbaijan. He said that the Joint Ministerial Commission's meeting will go a long way in promoting economic relations between the two countries.

Minister for Petroleum and Natural Resources Amanullah Khan Jadoon, Special Assistant to Prime Minister, Commander (Retd)  Khalil-ur-Rehman, Minister of State for Economic Affairs Ms. Hina Rabbani Khar, and senior officials also attended the meeting. APP