Commerce Minister Altaf Hossain Choudhury will lead the Bangladesh delegation at the two-day meeting while Pakistan side will be headed by Advisor to the Prime Minister of Pakistan on Finance and Revenue Dr Salman Shah, who arrived here yesterday.

"Trade potential between the two countries is unlimited, but the trade volume (at present) is limited. We think the two-way trade can be increased to one billion dollars annually," Shah told reporters after a meeting with Foreign Minister M Morshed Khan at the latter's office in the afternoon.

He said the JEC meeting will discuss the issue of bilateral FTA aiming at giving a boost to the bilateral trade as well as look for different options to reduce the trade imbalance that Bangladesh suffers with Pakistan.

Bangladesh has a trade deficit of about US$ 16 million in FY2003-04 with its exports to Pakistan at US$ 45 million against imports worth US$ 61 million, according to official figures.

During July-December period of FY2004-05, Bangladesh's exports stood at only US$ 13 million against its imports from Pakistan at US$ 65 million.

"We had useful discussion. The people of Pakistan want close and productive relation with Bangladesh," he said after the meeting.

Earlier, Shah called on Prime Minister Khaleda Zia who, he said, "fully wants to support the economic and political co-operation between the two countries."

Commerce ministry sources said at the JEC meeting the Pakistan side will be interested to discuss the trade and commerce related issues, industrial co-operation and co-operation in agriculture, railway, telecommunications, water and power sectors.