Saudi King Abdullah held talks with Pakistani President Pervez Musharraf and Prime Minister Shaukat Aziz on a wide range of issues, said a joint statement issued at the end of the monarch's two-day visit to Pakistan.

"There is a need to intensify and coordinate bilateral, regional and international cooperation to combat terrorism and to eradicate its root causes," the statement said.

The two Islamic nations said they would cooperate to "fight the menace of terrorism and other international crimes such as money laundering, drugs trafficking and arms smuggling in a sustained and comprehensive manner," it said.

Musharraf and King Abdullah also discussed the situation in the Palestinian territories, the Middle East and Iran, it said.

"The two sides expressed their hope that Hamas will form a government which preserves the legitimate rights of the Palestinians, safeguard their interests and work for progress in the peace process," the statement said.

"Both sides expressed the hope that the evolving political process would result in the establishment of a government capable of assuring Iraq's unity," it added.

Musharraf thanked the Saudi ruler for the kingdom's "prompt and continuous" aid to Pakistan in the wake of October 8 earthquake that killed more than 73,000 people.

He expressed "deep gratitude for the Saudi pledge to assist in rebuilding the earthquake-stricken areas through the Saudi Development Fund to finance housing, road, education and health projects," it said.