Islamabad, Jul 17 (IANS): Pakistan has proposed a currency swap agreement with Iran to boost bilateral trade and economic relations between them.

President Asif Ali Zardari made the proposal to his Iranian counterpart Mahmoud Ahmedinejad, during a day-long visit to Tehran Saturday, Dawn News reported Sunday.

Zardari, who returned home Sunday morning, also disclosed that Pakistan was in talks with China, Sri Lanka and Turkey for currency swap arrangements.

Zardari held two rounds of talks with Ahmedinejad, the first being delegation-level talks followed by a one-on-one meeting.

The two leaders also agreed on adopting a regional approach to addressing the growing challenge of extremism and militancy.

They expressed confidence that joint efforts could prove helpful in countering terrorism, which is a common enemy for the entire region and the world.

Pakistani Interior Minister Rehman Malik, Minister for Water and Power Syed Naveed Qamar, Minister for Petroleum Asim Hussain and presidential spokesman Farhatullah Babar accompanied President Zardari on the visit.