ISLAMABAD, Nov 24: President Gen Pervez Musharraf and his Indonesian counterpart Susilo Bambang Yudhoyono on Thursday agreed to step up cooperation in the counter-terror campaign.

“We are both victims of terrorism. Therefore, we need to fight the menace together through increased intelligence cooperation,” declared President Musharraf at a news conference after talks between the two countries.

The two sides also agreed on encouraging their private sectors for enhancing economic ties and signed a framework accord for the purpose.

The two leaders oversaw signing of a ‘letter of intent’ to boost cooperation in fighting terrorism which they described as important in the context of increasing bilateral ties.

Mr Yudhoyono paid tribute to Gen Musharraf for his efforts in the fight against terrorism and said his vision of enlightened moderation had significance vis-a-vis improving the lot of the Muslim world and addressing extremism.

“We shall share information and intelligence and work jointly in fighting terror,” he said.

Referring to the forthcoming OIC summit in Makkah, President Musharraf expressed the hope that the leaders of the Muslim world would adopt proposals for reform of the organization in the light of enlightened moderation.

He hoped that Pakistan and Indonesia would make significant efforts for turning the Organization of Islamic Conference into a vibrant voice of the Muslim world.

The two leaders also discussed the Middle East peace process and exchanged views on how they could play a positive role for the establishment of an independent Palestinian state and a fair settlement of the dispute.

“We are resolved to explore opportunities for investment, trade and joint ventures,” President Musharraf said. He underlined Pakistan’s strategic location to serve as a corridor for trade and energy among South Asia, Central Asia and the Gulf countries.

Mr Yudhoyono expressed his country’s solidarity with the president in the wake of the Oct 8 earthquake and said Jakarta would extend all help to Pakistan to handle the aftermath of the disaster. He thanked Pakistan for its assistance to Indonesia following the last year’s tsunami.

Gen Musharraf thanked Mr Yudhoyono for Jakarta’s support to Pakistan in gaining membership of the ASEAN Regional Forum and looked forward to its continuing support in becoming full dialogue partner of the Association of Southeast Asian Nations.

“We have historic ties based on bonds of common faith...I am sure that our economic ties will be further cemented through increased interaction between the private sectors,” he said.

President Musharraf said that both countries had discussed ways and means to diversify economic cooperation at his one-to-one meeting with President Yudhoyono and the formal talks between the two sides.

The joint ministerial commission of the two counters would focus on augmenting trade and economic cooperation, he added.

On major international issues, he pointed out, the two sides had commonality of views.

In reply to a question, he said Pakistan would encourage more Indonesian students to study at its universities and added that the two countries would also share information to curb any student having links with terrorists.

The two leaders also discussed cooperation in the field of defence training and production.

BANQUET: Later, speaking at a banquet he hosted in honour of President Yudhoyono, President Musharraf said Pakistan desired to foster strong economic relations with Asia Pacific countries as part of its Vision East Asia policy.