Federal Minister for Finance Dr Abdul Hafeez Shaikh said on Monday that stronger trade, economic and cultural ties between Pakistan and Afghanistan would boost economic development and uplift the standard of living in the two neighboring countries.

Dr Hafeez Shaikh, in his opening address to the 8th two-day Pakistan-Afghanistan Joint Economic Commission here, said that the commission provides a platform to explore avenues of greater economic cooperation to strengthen economic relations between the two countries.

He said that vast opportunities of increased cooperation and economic integration existed between Pakistan and its neighbors and asserted that the government was fully committed to exploit those opportunities for the betterment of all neighboring countries.

He said the government was fully committed to establishing Jalalabad-Peshawar road and rail link and Jalalabad-Turkham road link.

Highlighting Pakistan's economic situation, Dr Hafeez Shaikh said that his county has embarked upon a major reform programme that aims at fiscal stabilization, mobilizing domestic resources, phasing out subsidies, restructuring the power sector and other public sector enterprises and strengthening the social safety net.

"We are working towards laying the foundation for a new growth model driver by domestic demand with a flexible exchange rate that moves in response to market forces with more open, market based economy", he remarked.

He added that Pakistan's biggest challenge is to rebalance the economy that will achieve multiple goals of high economic growth, employment and reasonable price stability in an uncertain international economic and financial environment.

Speaking on the occasion, Afghan Finance Minister Dr Hazrat Umar Zakhilwal said Pakistan and Afghanistan share deep-rooted historical, cultural and regional ties, however there is a need to strengthen economic relations as well.

Expressing his gratitude towards the $300 million Pakistani assistance, he said Pakistan has always helped Afghanistan in the hour of need despite facing challenges of its own.