Pakistan President Pervez Musharraf and his visiting Afghan counterpart Hamid Karzai on Tuesday held exclusive talks at the President Palace in Islamabad immediately after the formal welcome ceremony.

The discussion involved a broad range of issues including relations between the two countries and regional and international developments of common concern, the official news agency Associated Press of Pakistan reported.

Musharraf observed that the two neighboring countries enjoy a very special relationship based on strong historic and cultural links.

He reiterated Islamabad's commitment to the reconstruction of Afghanistan. A sum of 43.36 million US dollars has already been consumed out of 100 million dollars pledged by Pakistan for reconstruction of its western neighbor.

Stressing the importance of a strong relationship between the two countries, Musharraf said it is important for sustainable peace and continued socio-economic development of the region.

In this context, he referred to close political ties and increasing trade and economic relations and expressed the hope that a set of agreements, to be signed on Wednesday, would reinvigorate their bilateral ties.

Pakistan-Afghanistan trade volume has been growing steadily in the last few years. It has swelled to one billion dollars this year.

Hamid Karzai said Kabul is for strong political and economic relations with Pakistan.

President Karzai's visit coincides with the 65th anniversary of Pakistan Resolution and he will be the guest of honor at the Pakistan Day Parade on Wednesday.

Source: Xinhua