Pakistan and Bangladesh have agreed an initial deal to set up a joint investment company for sectors such as textiles, readymade garments and agriculture, according to press reports.

Pakistani Prime Minister Shaukat Aziz and Bangladesh Prime Minister Khaleda Zia are reportedly backing the proposed deal, which is aimed at boosting trade between the two countries.

Aziz said that the joint investment company could help finance joint ventures between the two, while Zia said the countries have a lot of opportunity for increased trade and investment.

Pakistan's Minister for Textile Mushtaq Ali Cheema told a 35-member delegation that Pakistan would provide power-looms and spare parts at competitive prices to Bangladesh.