Both Bangladesh and India agreed to include Nepal and Bhutan in the transit and transhipment loop to ensure wider regional connectivity, said Finance Minister AMA Muhith yesterday.

In an effort to turn the country into a regional economic hub, Bangladesh further wants to widen the transit and transhipment facilities to Myanmar, Thailand and China, the minister said after a meeting with the visiting Indian External Affairs Minister SM Krishna at the Planning Ministry in Dhaka.

“We have a plan to turn the country into an economic hub by allowing transit to East Asian and South Asian countries," Muhith said.

India has already approved eight projects last month to be financed underthe$l billion credit line from India, Muhith said.

The major projects include roads and highways and port development, energy and power and transportation. India wants Bangladesh to develop Chittagong and Khulna ports attaching due priority, so that the participating countries in the transit network can easily use those ports, he said.

Muhith said Bangladesh had earlier sent 20 different projects costing $961 million, but India has so far approved eight projects and four more are under scrutiny. All those projects will be implemented under the Indian $ 1 billion credit line.

He said India has already agreed to export 250 megawatts of electricity to Bangladesh, an issue that is under negotiation.

Bangladesh sought Indian investment in energy and

power, transport and industrial sectors, said the minister.

The Federation of Indian Chambers of Commerce and Industry and the Federation of Bangladesh Chambers of Commerce and Industry are working closely to increase investment here by Indian entrepreneurs, the minister added.

Krishna has come to Dhaka as Indian Prime Minister Manmohan Singh is scheduled to visit Bangladesh in early September to sign several deals.

“We have already taken all necessary preparations so that both Bangladeshi and Indian prime ministers can finalise the proposed deals in September,” Muhith said.

This is the final preparatory visit by any Indian minister before the arrival of Indian Prime Minister, he added.

Muhith pressed entry of more Bangladeshi goods to Indian markets to reduce trade imbalance between the two countries.

Krishna told the reporters that

they have discussed trade and investment during the meeting.

“We have discussed different issues so that the bilateral relationship can be strengthened further. India has always shown interest in Bangladesh," he said.

The Indian minister is scheduled to brief reporters formally on his visit's outcome today.

Later, Muhith briefed the reporters on the outcome of his visit to Saudi Arabia. He said he sought further Saudi invest-

ment in energy and power and transport sectors.

The purpose of his Saudi visit was to attract more investment, the minister said adding that during his visithe also urged the Saudi government for recruitment of more Bangladeshi workers.

Muhith said both foreign and home ministers are scheduled to visit Saudi Arabia shortly to discuss different issues including opening another mission for increasing more bilateral trade between the two countries.