Sharjah-based Crescent Petroleum has invested in a refining project in Pakistan through a joint venture with Pakistan's state-owned petroleum corporation, official sources said.

"This is one of the most recent investments from the UAE in Pakistan," a senior official at the Pakistani embassy confirmed yesterday.

Details of the investments were not made.

The project entails an oil refinery and a pipeline to be built from Karachi to Mahmud Kot near Multan.

Crescent Petroleum officials were unavailable for comment.

Meanwhile, trade between the UAE and Pakistan is on the upswing. Total exports from Pakistan to the UAE for the 12 months up to June increased some 20 per cent to $700 million. The previous year, it was around $615 million.

"Trade between Pakistan and the UAE has witnessed steady growth in the last five years. Despite the post-September 11 events and the war risk premium charged by shipping companies, trade has not been affected, though it could have been higher," said the official.

The UAE continues to be Pakistan's leading trade partner in the Gulf. The principal items of exports from Pakistan are rice, leather and leather products, textiles, sports goods, surgical instruments, meat, fruits and vegetables.

A new trend has been the growth in Pakistani exports of non-traditional items whose exports are generally below $5 million annually. "Export items such as fish and fish products, to cite one example, have grown in the last one to two years."

One reason for the growing bilateral economic ties between the two countries is the active role played by the Joint Economic Commission.

"The commission has ministerial representation from both sides and periodically trade and economic ties are discussed to promote two-way trade and investment."