"We agreed that enhancing bilateral collaboration in the energy sector was one of the major areas of mutually beneficial cooperation," Adviser on Foreign Affairs Sartaj Aziz told a joint press conference with visiting Iranian Foreign Minister Javad Zarif here.
Zarif earlier today held talks with Aziz which focused on economic cooperation and regional security.
Aziz said they discussed the progress on the Iran-Pakistan gas pipeline, with Islamabad expressing resolve to start work on the construction of the project at the earliest.
Iran completed its part of the project in 2013, but work was put on hold by Pakistan because of sanctions by US and Europe on Tehran over its controversial nuclear programme.
Aziz said economic integration and connectivity within the region should be improved in order to achieve better economic and commercial activity.
He welcomed Iran's nuclear agreement signed last month, hoping that it will lead to peace on an international level.
The Iranian foreign minister said, during the talks, both sides discussed extremism and Iran urged Pakistan to play its role in eliminating extremism, sectarianism and militancy from the region.
Zarif, who met Pakistan Prime Minister Nawaz Sharif, said they discussed economic cooperation and security issues.
"PM Nawaz and I discussed to increase cooperation between the two countries in sectors ranging from oil to gas, energy, transportation and others," he said.
He said violence, insecurity and terrorism in the region, the Middle East and in general, needs to be dealt with.
This was Zarif's second visit to Pakistan this year.
"It is a great pleasure and honour to be back in Pakistan within a time span of four to five months," he said.
