Bangladesh and Pakistan have agreed to conclude a free trade agreement by September.
The agreement came during Monday's talks in Islamabad between Pakistan's prime minister, Shaukat Aziz, and his Bangladeshi counterpart, Khaleda Zia.
Later, Mr. Aziz told a joint news conference the two sides have agreed in principle to finalize the agreement this year so that trade between the two countries can expand.
He also said Pakistan wants to buy more goods from Bangladesh and increase its investment in that country.
Mrs. Zia arrived in Islamabad Sunday, becoming the first Bangladeshi prime minister to travel to Pakistan for a bilateral meeting in 12 years.
The two sides signed agreements on cooperation in agriculture, science and technology and tourism.
Mrs. Zia also will meet with Pakistani President Pervez Musharraf on Tuesday before she returns home.