Iranian President Mohammad Khatami is boosting business and cultural ties at the conclusion of a landmark visit to Pakistan.

At the end of a three-day visit, the president is in the historic city of Lahore close to the Indian border.

During his visit Mr Khatami said he was willing to help reduce tension between India and Pakistan.

He said that a $3.5bn pipeline carrying Iranian gas through Pakistan to India could bring prosperity to all three countries - but not without peace and security in the region.

On Tuesday, the two countries signed agreements related to trade and boosting co-operation in defence, science and technology.

President Khatami also raised the issue of Tehran's planned nuclear power plant, which the United States fears could be used to develop atomic weapons.

Controversy

In Lahore, the Iranian leader is to meet business leaders and also visit the mausoleum of Pakistan's national poet, Mohammad Iqbal.

Iran wants to build a gas pipeline through Pakistan to India

But Islamic religious parties accused the Pakistan government of changing the venue of a civic reception to prevent ordinary citizens from meeting President Khatami.

The religious parties, which are regarded as having close ties to the Iranian clerics, had planned a public gathering at the Minar-e-Pakistan, a monument built to commemorate the creation of Pakistan.

But the opposition Jamaat-e-Islami, the country's largest Islamic party, accused the government of changing the venue to stop public entry.

"That would have sent a more powerful message of support for the Islamic people of Iran which the Pakistan Government wants to suppress," Jamaat leader, Ameerul Azeem, told the BBC.

India

During his visit President Khatami said he had personally intervened when India and Pakistan were on the brink of war earlier this year, and he was determined to continue his efforts.

"We want to do everything to remove tensions and promote peace on both sides," he said.

President Khatami avoided talking about past differences between Iran and Pakistan on the Taleban, and said the two countries were now committed to reconstruction efforts in neighbouring Afghanistan.

President Khatami's three-day visit is the first by an Iranian leader since the fall of the Taleban, and is viewed as a watershed in relations between Iran and Pakistan.