At a first ever summit in Brussels, senior European Union officials promised to study future ways to boost commerce with the regime in Pakistan, with the ultimate aim of opening a free trade area.

"The EU is ready to help in many fields and we discussed ways to do it," Czech President Vaclav Klaus, whose country holds the EU's rotating presidency, said after the three-hour meeting.

"On the one hand, the issue of humanitarian aid; on the other the much more important forum of aid which is the opening of markets for Pakistan of European countries."

The summit, attended by Pakistan's President Asif Ali Zardari, comes amid a massive offensive by government troops against the Taliban in the northwest which has led some two million people to flee their homes.

As a first step, the European Commission announced that it would provide 65 million euros in new aid money to provide food, water and shelter to people who have fled the Swat valley and other areas.

"In exchange, we want Pakistan to take the fight against terrorism very seriously and that they do a lot on their home front," said EU External Relations Commissioner Benita Ferrero-Waldner.

However the trade measures remained unclear.

The EU committed to "explore" how Pakistan might benefit from its preferential tariff regime, which affords customs privileges in return for respecting principles in the areas of workers' rights and the environment.

"We are open to consider that," said European Commission President Jose Manuel Barroso.

"We believe that what Pakistan needs now is short and medium-term measures to diversify its exports," he said. "We are trying to find the most adequate measures."

He conceded that any preferential steps would have to be accepted by all members of the World Trade Organisation and would be extremely difficult to push through.

Zardari remained upbeat despite the hazy nature of the pledges.

"I have great hopes and I am positive that we will have support for (the trade measures). All these are important issues. They will help democracy become stronger in Pakistan," he said.

"The fact that there is a commitment, and the appetite to help Pakistan, I'm very satisfied with," he said.

Earlier at NATO headquarters, Zardari had appealed for international help to fight the Taliban, who are also helping launch cross border attacks into Afghanistan.

"With the help of the world we will win this, and half the war is the hearts and minds of the people," he said.

Yet fears are growing of a massive humanitarian crisis.

Aid organisation Oxfam called it "the world's biggest and fastest growing human displacement in over a decade" and said funds remained inadequate, with the EU targeted for its "feeble response".

Meanwhile rights watchdog Amnesty International urged the 27-nation bloc to pressure Islamabad to protect civilians and respect the law.

"The EU should stress the importance of Pakistan fully complying with its obligations under international humanitarian and human rights law in all its military operations," a statement said.

The offensive is also vital to NATO interests amid a battle to beat a Taliban-led insurgency that is undermining its biggest and most ambitious operation ever in neighbouring Afghanistan.

The insurgents, backed by Al Qaeda and criminal gangs, are using Pakistan's lawless tribal areas as a base, resulting in cross-border shooting involving NATO-led forces or US operated aerial drones.

After addressing NATO ambassadors, Zardari said: "It's a constructive dialogue. We are partners together. I intend to be partners with them."

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