TEHRAN -- Kazakh Minister of Transport and Communications Kazhmurat Nagmanov and Iran's Minister of Roads and Transportation Ahmad Khorram attending the seventh session of Iran-Kazakhstan Economic Commission here on Monday inked a memorandum of understanding on mutual cooperation.

In the meeting, besides signing an MoU on joint trade, industrial, agricultural and energy collaboration, the two sides reached agreement on joint work on transportation, customs, tourism, and health as well as provincial collaboration between Almaty and Khorassan Province.

Speaking to reporters after signing the MoU, Khorram said that according to the agreement, in order to increase mutual trade volume to $130 million both sides agreed to facilitate expansion of the the private sector.

Khorram noted that Kazakhstan is prepared to rent one million hectares of its farmlands to Iran and added that the Kazakh government will sponsor the private sector to the effect.

The eighth meeting of Iran-Kazakhstan Economic Commission is scheduled to be held in the Kazakh capital city of Astana in 2004.

The Kazakh minister arrived in Tehran on an official visit and is due to leave on Tuesday, IRNA reported.