The statement was issued at the end of a four-day official visit of Malaysian Prime Minister Abdullah Ahmad Badawi who held wide-ranging talks with President General Pervez Musharraf and Prime Minister Shaukat Aziz.
"The two countries underlined the importance of international co-operation in the fight against terrorism and reaffirmed their countries' commitment to combating terrorism and other transnational crimes in a comprehensive manner.
"Pakistan and Malaysia value highly their mutually beneficial co-operation, which has been strengthening and broadening at the strategic, political, economic and cultural planes," the statement said.
At the strategic and political levels, the two countries agreed to make every effort to further develop their relations and multi-faceted co-operation for the common benefit of the two countries.
"In this regard, each side shall be guided by generally accepted principles of international laws as well as traditions of friendly relations between their two countries on the basis of mutual respect for national sovereignty, non-interference in each other's internal affairs, equality and democratic principles of each country."
Pakistan and Malaysia reaffirmed their commitment to implement the purpose and principles of the United Nations Charter.
"Pakistan and Malaysia shall strengthen mechanisms of mutual consultation and co-operation by instituting regular working level consultations between their respective Foreign Ministries."
Malaysia appreciated Pakistan's resolve to further enhance its linkages with the Association of South East Asian Nations and expressed support to Pakistan's bid to establish full dialogue partnership with Asean.
The decision on Pakistan's Dialogue Partnership status will be decided by consensus by Asean member countries.
The two countries agreed to promote investment and trade, including direct trade. A joint study group would be form to establish Comprehensive Economic Partnership and launching of negotiations on the Free Trade Agreement in 2005.
They agreed to establish Joint Business and Investment Council comprising the private sector of the two countries.
It was also agreed, in principle, to promote the establishment of joint ventures in the public sector projects with the participation of the private sectors of both countries. The two countries will encourage joint ventures and promote closer co-operation between the private sectors. In particular Malaysia would like Pakistan to facilitate downstream activities of palm oil and palm products in Pakistan.
The two countries would promote co-operation in Agriculture, agro-based industries, Halal food industry and tradition medicines.
Malaysian companies will be encouraged to invest in infrastructure, construction and housing sectors in Pakistan.
The statement said that the two countries will explore, develop and conclude arrangements for mutually beneficial co-operation in the fields of Information Technology and telecommunications.
They agreed to develop and promote activities and programmes to enhance people to people contacts.
It was agreed to designate Pakistan as a source country for export of manpower to Malaysia.
The two countries will increase frequency of flights between them. It was also agreed to have further discussions on the establishment of a Joint Investment Company.
The countries will increase cultural contacts, student exchanges and facilitate collaboration among academic institutions.
Pakistan and Malaysia will also promote co-operation in science and technology through sharing of information and expertise, joint research as well as to jointly organise seminar bringing together scientific community of both countries.
It was also decided that the relevant officials from both sides will meet to expedite implementation of the decisions.