India and Pakistan decided to lay a optic fiber between Amritsar of north India's Punjab Pradesh and Lahore of Pakistan at a bilateral trade talk Wednesday.

The two countries announced a joint statement after the talk on Wednesday saying that both sides are expecting the fiber will be built as soon as possible but did not give detailed information and timetable.

The two countries also agreed to speed up the process to allow several banks to open branches in each others' country.

At the talk, the two sides agreed to hold talks on aviation in Pakistan in September to review the existing air services agreement, besides their shipping protocol of 1975.

"The second meeting of the joint study group would be convened at an early date in Islamabad," the joint statement said.

Before that the two countries will hold sub-group talks on non- tariff barriers, customs cooperation and simplifying the trade procedures.

The meeting on economic and commercial cooperation under the composite dialogue process opened on Tuesday.

India had sought Pakistan's support in a bid to make the South Asian Free Trade Area operational by Jan. 1, 2006, and called for easier shipment of goods by road and rail at Tuesday's meeting.

Source: Xinhua