"The response to the report of the high-level panel constituted to make recommendations should be holistic. The two foreign ministers showed their preference for Model-B, which envisages the creation of eight non-permanent seats in the Security Council with a four-year renewable term," the statement said.

Foreign Minister Kharrazi of the Islamic Republic of Iran, who arrived here ona two day official visit here Monday, held talks on a wide range of subjects with Foreign Minister Khurshid Mehmood Kasuri at the Foreign Office on Tuesday.

The talks continued over a working luncheon hosted by Foreign Minister Kasuri in honor of Dr. Kharrzai.

"The two foreign ministers reviewed bilateral relations with a focus on trade and economic cooperation as well as the Pak-Iran gas pipeline project. They exchanged views on important regional and international issues, including developments in Iraq, Afghanistan, reform of the UN, expansion of the Security Council and the ongoing dialogue between Iran and the EU," the statement said.

"The talks which were held in a warm and cordial atmosphere characterized by the close relations between the two countries."

Kasuri said that the people of Pakistan had brotherly ties with Iran based on their common bonds of faith, culture, history and geography.

"Both countries were partners and not competitors in the region and that cooperation between the two countries will have a positive impact beyond their borders," the statement said.

"The two foreign ministers expressed their interest in consolidating and expanding cooperation in various fields and discussed ways and means of enhancing trade and economic relations.

"Those ties would be the subject of a greater discussion when Pakistan and Iran Joint Ministerial commission meets in Tehran in February 2005."

The two foreign ministers, while expressing their keenness on an early implementation of the gas pipeline project, referred to the meeting of their joint working group which ended in Tehran yesterday, the statement added.

"Foreign Minister Kasuri said that Pakistan needs the gas pipeline with Iran anyway due to its very high growth rate and in view of an even higher growth expected in the future. Pakistan would welcome India joining the project while assuring it of the security of supplies through the Pakistani territory."

Kasuri briefed Foreign Minister Kharrazi on the progress of the composite dialogue with India which, he said, Pakistan is pursuing with all sincerity.

He expressed grateful thanks to the government and people of Iran for their support to Pakistan on the Kashmir issue and expressed the hope that it would help in Pakistan's efforts to find a peaceful and negotiated settlement to the Jammu and Kashmir issue.

"The two foreign ministers discussed the latest developments in Iraq and reiterated the importance they attach to territorial integrity, national sovereignty and independence of Iraq and expressed the hope that a representative, broad-based and pluralistic government will be set up in Baghdad after the elections which they hoped would include all ethnic and religious groups in Iraq," said the statement.