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September 11 attacks on the US.

But in an apparently warm atmosphere before Musharraf was to host a state dinner for Karzai, he underlined the need for intelligence cooperation with Afghanistan to fight the militant threat.
He said the neighbours had to stop "this menace of extremism and terrorism which is destroying both our countries" and called on their respective intelligence agencies to work hand-in-hand.

"We have developed a strong understanding of each other's problems," Musharraf said. "The key to enhancing our capability against terrorists and extremists is intelligence cooperation."
Both nations are pivotal allies in the US-led "war on terror" and get substantial US aid aimed at fighting militants - but both have also seen a sharp increase in violence this year.

This has been the deadliest year yet of the Taliban insurgency in Afghanistan, with some 6,000 people killed, while more than 770 people have died in militant attacks in Pakistan.
Karzai, who repeatedly referred to Musharraf as "my brother" during the news conference, said their talks had helped each other understand the issues both nations are facing.

"People in both the countries are suffering - suffering a lot," Karzai said.
"And it is incumbent upon us - the leadership of the two countries, the governments - to find ways to bring peace and stability to each home, each family, in both countries."
The border area, where Al-Qaeda leader Osama bin Laden is believed to have found refuge after September 11, is rife with militants and remains largely out of the control of both governments.

Musharraf acknowledged the increase in suicide attacks in Pakistan but said "the degree of terrorism otherwise has decreased".

He said there was a 42 percent decrease in Taliban activity in Afghanistan originating in Pakistan.

Musharraf and Karzai said they also discussed trade and other bilateral issues. Karzai was due to return to Afghanistan on Thursday.

It was their first meeting since August, when they attended a tribal assembly in Afghanistan to address the threat of Taliban and Al-Qaeda militants. Pakistan will host the next assembly, or jirga, in 2008.

The Afghan president is also due to meet Pakistan's caretaker prime minister Mohammedmian Soomro, who holds office until the country's parliamentary elections on January 8 - a vote Islamic militants have threatened to disrupt.

Afghan officials have repeatedly said that Taliban militants are being trained and armed in Pakistan and sent across the border to attack Afghan

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