Amid reports that Afghanistan may hold peace talks with the Taliban, President Ashraf Ghani today called Pakistan Prime Minister Nawaz Sharif and discussed bilateral relations and transit trade issues.

Ghani telephoned Sharif to discuss bilateral issues in the first direct contact between the two leaders after reports emerged that Afghanistan may hold talks with the Taliban to end the more than a decade-long insurgency.

"Matters related to bilateral relations and Afghan Transit Trade came up for discussion" during the telephonic contact, according to an official statement here.

Sharif reaffirmed that bilateral relations between the two countries have been strengthening with each passing day. Ghani expressed his satisfaction that relations between the two countries have been going on an upward trajectory and people to people and institution to institution contacts between the two countries are being strengthened with each passing day.