Prime Minister Nawaz Sharif and his Turkish counterpart Recep Tayyip Erdogan also vowed to intensify cooperation in energy, trade, urban development, infrastructure and housing sectors.
The two countries signed several MoUs, including one for operationalising the Islamabad-Tehran-Istanbul ECO Container Train.
Sharif said regular operations of the train would strengthen connectivity and facilitate greater economic integration between the region and beyond.
The two sides carried out a comprehensive review of bilateral relations during a one-to-one meeting followed by delegation level talks at the Prime Minister's House.
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"We have just concluded a comprehensive review of our bilateral relations as well as regional and international issues of mutual concern. Our discussions were marked by unanimity of views on all issues," Sharif said.
He said the two sides also decided to conclude a Preferential Trade Agreement (PTA) in the first quarter of 2014. He expressed hope the PTA will go a long way in further expanding bilateral economic ties.
Erdogan arrived in Lahore yesterday on a two-day visit with a large business delegation. He said Turkey wants to expand bilateral ties in all fields, including political, military, trade, economy and culture.
Erdogan said the level of trade between the two countries did not match their strong relations and there was a need to take steps to enhance it significantly.
Sharif said the meeting comes at a time when there was strife and instability in the region. "As two pillars of strength, Pakistan and Turkey stand united in our joint endeavour to promote peace and stability in the region," he said.
Earlier, the two sides signed two MoUs for cooperation in Disaster Management and Sports. Under the MoU on Disaster Management, Turkey will provide technology, expertise and training to tackle disasters and their after effects.