ISLAMABAD, Feb 10 (Reuters): Pakistan and Sri Lanka signed a free trade agreement yesterday which is expected to boost trade and serve as a model for similar accords among other South Asian nations, Pakistani Prime Minister Shaukat Aziz said. "We believe that our FTA with Sri Lanka is a stepping stone for expanding economic relations between the two countries," Aziz told a joint news conference with visiting Sri Lankan President Chandrika Kumaratunga. "It can serve as a model for good bilateral relations between us and many countries in South Asia and beyond," he said. Officials say negligible trade between Pakistan and Sri Lanka, both members of the seven-nation South Asian Association for Regional Cooperation (SAARC), would get a boost from the FTA. Aziz said bilateral deals should not affect trade talks between SAARC members, who are also pursuing a regional South Asian Free Trade Agreement to come into force from 2006, although postponement of the latest SAARC summit may delay implementation. "These agreements in no way conflict with SAFTA. The SAARC process, we want to continue and expand and strengthen. Both would complement each other and our objective is to create more linkages and interdependencies," Aziz said. The 13th SAARC summit scheduled to be held in Bangladesh on Feb. 6- 7, was called off after India declined to attend, citing the security situation in Dhaka and a political crisis in Nepal. Kumaratunga, on the last day of a three-day official visit, signed six other agreements with Pakistan including technical assistance in jewellery-making and a waiver of visa fees for students.
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