TEHRAN, Jan 26: Afghan President Hamid Karzai arrived in Iran on Wednesday for a two-day visit mainly focused on boosting economic relations and inaugurating a new cross-border highway, officials said.

Mr Karzai, at the head of a high-ranking political and economic delegation and on his first visit to Iran since taking office as elected president, held talks with President Mohammad Khatami.

On Thursday, they are scheduled to inaugurate a new highway linking the north eastern Iranian border town of Dogharoun with the Afghan city of Herat. Iran built the 120km road at a cost of $60 million.

The two presidents are also due to open a 132kw power transmission line, the state news agency IRNA reported. Afghan government officials said while the visit would be largely centred on improving business ties, the two sides were also set to discuss 'general security issues' and the repatriation of Afghan refugees living in Iran. -AFP