The two Presidents also oversaw the signing of a series of agreements and Memorandums of Understanding on forging cooperation in various fields.
The agreements pertained to exemption of visas for holders of diplomatic passports of both countries and cooperation in drug trafficking while the MoUs will allow the launch of joint technical cooperation in food and nutritional security to fight hunger and holding of consultations on affairs of common concern and allowing examination of global issues.
The agreements and MoUs were signed by Foreign Minister Khurshid M Kasuri and his Brazilian counterpart.
Earlier, President General Pervez Musharraf was given a warm state reception here at the sprawling Praca dos Tris Poderes compound when he arrived at the Brazilian Presidential Palace for talks with the host leader.
A 21-gun salute boomed when the President arrived in his motorcade. President da Silva welcomed the President.
The Brazilian Imperial Guard presented guard of honour as Pakistani and Brazilian flags fluttered amid Southern American sea breeze "blowing across the capital.
The national anthems of the two countries were also played.
Later, President Luiz Inacio Lula Da Silva hosted a luncheon reception in honour of President Pervez Musharraf at the presidential palace.
Addressing on the occasion, President Musharraf said a new relationship between Pakistan and Brazil is developing which extends beyond political understanding and is set to gather a fresh momentum in the areas of trade and economic cooperation.
He said during the talks between him and the Brazilian counterpart they were to identify many areas of commonality to promote bilateral trade to their mutual benefit.
The President informed that the two countries have decided that the governments will facilitate the businessmen in the private sector to enhance cooperation in commercial fields.
Musharraf said he has brought a delegation of businessmen with him to interact with their Brazilian counterparts to bolster trade.
Noting a lot of commonalties that the two countries can pursue, he said there is a desire to develop South-South relationship between Brazil and Pakistan in a spirit of cooperation and non-interference in the affairs of other states.
Pakistan, he said, is totally in consonance with Brazil to fight hunger and poverty in the world.
"We are part of the WTO regime which facilitates and improves the fight against hunger and poverty in the developing countries." Referring to challenges confronting Pakistan, Musharraf said the country has been extremely successful in combating terrorism in the region.
He said Pakistan is also trying to improve its relations with countries in South Asia and has initiated a process of rapprochement with India through building measures and for the resolution of outstanding disputes.
He asked the Brazilian President to use his good offices and play a role in the resolution of political disputes and alleviation of poverty.
On the domestic front, the President said Pakistan has launched a societal reform and will steer Pakistan forward as a moderate Islamic country that believes in moderation.
He informed the Brazilian leader that it is a small minority of extremists, which is indulging in militancy, whereas' the vast majority of Pakistanis is moderate.
President Musharraf expressed the confidence that the strategy adopted by the government would succeed in stamping out terrorism.
"The government is succeeding and will remain steadfast and will be successful."
He invited the President of Brazil to visit Pakistan that Da Silva accepted.
Welcoming President Musharraf at a luncheon, Brazilian President Da Silva said his country intends to propel economic exchanges with Pakistan that should reflect the importance of two countries and the dimensions and dynamism of their markets.
He praised Pakistan's fight against violence and extremism and observed that the increasing cooperation between the two countries augurs well for both.
"The expansion of bilateral trade - which doubled this year - points to the significant potential of this relationship," he told a gathering including top officials of the two countries.
Da Silva said President Musharraf's visit to Brazil reaffirmed his confidence that in the future the relations and cooperation between the two countries would be improved to serve bilateral interests.
Referring to the mechanism of regular consultations signed by the two countries President Da Silva said it would enable both the countries to continue finding innovative means of cooperation that advances the mutual interest of both nations He praised President Musharraf's efforts to promote tolerance and understanding within Pakistan as well as in the world at large.
Appreciating efforts for a rapprochement between Pakistan and India he said, "the process of reconciliation with India in conjunction with leadership of that country bears the marks of a statesman - the impact of this gesture on stability in South Asia and international security has been extraordinary."