Prime Minister Aziz soon after his arrival in the Middle Eastern republic went into one-on-one meeting at the Prime Minister House. Later their aides joined in a formal round of talks that covered vast areas of cooperation.
Yemen's Prime Minister invited Pakistani investors to the country and said vast opportunities were available in diverse areas, particularly to establish joint companies in trade, industry, agriculture and mining areas.
"We are ready to open Yemeni market to Pakistani good quality products to set up a broad base of mutual interests between the two countries," he added.
They said there is large room for growth, particularly in oil and gas, minerals, garments, banking, livestock and corporate farming sectors and both agreed to continue high level exchanges.
The two leaders exchanged views on a range of bilateral, regional and international issues, and reaffirmed their desire to further expand and consolidate their relations. They also expressed unanimity of views on major international issues.
They took into account the existing relations between the two countries and observed that there was a wide scope for expanding these to bring them closer in all spheres, particularly through interaction between their private sectors.
The two leaders also reviewed the progress on the implementation of nine agreements signed during the visit of President Musharraf to Sana'a last year and President Saleh's visit to Islamabad.
The leaders said earlier implementation on these agreements would further intensify the ongoing process of cooperation between the two countries in various fields. They noted that the recent visits would carry forward the process of dialogue to further consolidate relations between the two countries.
Prime Minister Shaukat Aziz called for convening of Joint Ministerial Commission early next year. Urging closer collaboration between the private sectors he said, "We need to get our private sectors together."
He said Pakistan will send its trade delegation and offered rice, machinery, electric goods and other quality items at reasonable price. He also offered scholarships and on self-financing basis for higher education, besides cooperation in defence.
He called for reorganising and revitalising the Organisation of Islamic Conference (OIC) and by making it stronger by active participation by all the Islamic states.
Prime Minister Shaukat Aziz reiterated Pakistan's stance on UN's expansion and said there was a need for rationalising its structure and improves effectiveness of UN for women, environment and disaster management. The Prime Minister also informed him about Pakistan's role in the region, the war against terrorism and its efforts for bringing about lasting peace by resolving issues with its neighbours through negotiations.
The two leaders also took into account the situation in the Middle East and called for an early resolution of the Palestine issue to bring peace not only to the region, but also for the world at large. They also called for the resolution of the Palestinian issue in accordance with the UN Resolutions and the wishes of the Palestinian people. They also called for finding a peaceful solution to the Lebanon crisis.
The two leaders also expressed concern at the deteriorating security situation in Iraq and the suffering of the Iraqi people. Both leaders emphasised the importance of Iraq's territorial integrity and sovereignty.
Prime Minister Ba-jammal acknowledged Pakistan 's role in resolving the core issue of Kashmir through negotiations and the Confidence Building Measures being undertaken.
Prime Minister Shaukat Aziz said Pakistan sought a solution of the issue according to the aspirations and wishes of the Kashmiri people.
The two leaders also noted that stability and development in Afghanistan was vital for peace in the region. He said Pakistan was still hosting around three million Afghan refugees and sought their repatriation in a dignified manner.
On Iran, he said Pakistan was against nuclear proliferation by any country, however it recognises peaceful uses of nuclear technology under the IAEA guidelines. He said Iran's nuclear issue needs to be settled peacefully and said Pakistan was against the use of force and believes that diplomacy alone should resolve Iran's nuclear issue.
Prime Minister of Yemen also noted Pakistan's role at the regional, Islamic and international levels. It specifically noted the advancements made in science and technology and its successes in industrial, agricultural production and other areas. It sought Pakistan's assistance in these areas and pointed that a large number of students from Yemen were studying medicine and technology in Pakistan.
Prime Minister Aziz and Ba-Jammal condemned and rejected terrorism in all its forms and manifestations.
They however agreed that there was a need to meaningfully address the root causes that create feelings of extremism and hatred by ending discrimination, removing economic depravation, oppression and injustices from the society.
Prime Minister Shaukat Aziz and Ba-jammal also expressed concern over the way Islam was being projected by some for having some linkage with terrorism. They called for collective measures by the Muslim countries in removing such misperceptions and for projecting the true essence of Islam that called for love, brotherhood and harmony.
Shaukat Aziz appreciated his Yemeni's counterpart for acknowledging President Musharraf's concept of enlightened moderation and said the government was committed to pursuing it for bringing peace and harmony in the world. In this regard he also called for greater interfaith harmony to bridge the gap between civilisations for lasting world peace.
Prime Minister Shaukat Aziz informed his counterpart about the measures taken by the government to bring about political and economic stability in the country. He apprised him about the economic reforms undertaken by the government to turn around Pakistan's economy that was on the brink of collapse, when President General Pervez Musharraf took over.
He said the government of Pakistan has doubled the size and per capita income of Pakistan in the past seven years through a broad-based reform agenda. He offered its expertise in this area to Yemen.
He said today Pakistan was known as one of the top ten reforming countries and was pursuing the policies of liberalisation, de-regulation and privatisation.
The Yemeni's Prime Minister appreciated the significant progress made by Pakistan in all spheres and particularly noted the progress on the economic front.
He said Yemen would also like to seek cooperation with Pakistan in this area, besides learning from its experience in the agriculture sector.
The two sides agreed to hold another round of talks on Monday to hold further discussions and to explore new avenues of cooperation. Prime Minister Shaukat Aziz also invited his Yemeni's counterpart to visit Pakistan.
The Prime Minister of Yemen also hosted a banquet in honour of Prime Minister Shaukat Aziz.
Prime Minister Aziz will meet President Ali Abdullah Saleh in Aden on Monday, besides meeting with Chairman Shura Council, Speaker House of Representatives and will address the Pakistani community.