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The two presidents held wide-ranging bilateral talks in Istanbul on Monday, on the sidelines of the trilateral summit on Afghanistan.
The president's spokesperson Farhatullah Babar said the currency swap agreement would enable traders and businessmen of the two countries to trade in their respective currencies without drawing from their dollar based foreign exchange reserves.
This will reduce the pressure on the foreign exchange reserves and give a quantum jump to the bilateral trade between the two countries, Associated Press of Pakistan quoted him as saying.
Babar said Zardari has been looking at boosting Pakistan's trade as a means to generate economic activity in the country for job creation to wean away the youth from falling prey to the temptations offered by militants.
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