Tehran: Iranian President Mahmoud Ahmadinejad and visiting Pakistani President Asif Ali Zardari on Sunday called for a boost to bilateral relations, a news agency reported.

"Iran is ready to reinforce its cooperation with Pakistan in every field," Ahmadinejad was quoted as saying.

"Construction of the pipeline to export Iranian gas to Pakistan is underway, and we hope it will reach the frontier by the end of 2012," he added of a multi-billion-dollar project.

Zardari also said relations between the neighbours should be strengthened, and urged that "trade between the two countries be conducted in local currency and not the dollar, to curb smuggling," new agency said.

He also denounced "efforts by our enemies who seek to show that the Pakistani Government is unstable by provoking trouble," saying that those responsible would face justice.

Zardari's trip to Tehran, a sworn enemy of the United States, comes after Washington deferred USD 800 million (566 million Euros) in military aid to Islamabad in a bid to seek greater defence cooperation.

It also comes less than a month after Iran, Pakistan and Afghanistan agreed to cooperate to fight against militants.

Zardari's earlier visit had been to attend a counter-terrorism summit, on the sidelines of which the three countries reached the anti-militant cooperation agreement.