New Delhi, July 28 - India and Afghanistan Tuesday underlined terrorism as 'the most important security threat facing the region' and resolved to intensify cooperation in combating it. They will also set up a partnership council to enhance developmental ties.

The two countries issued a joint statement Tuesday after wide-ranging talks between Indian External Affairs Minister S.M. Krishna and his Afghan counterpart Rangin Dadfar Spanta Monday evening.

'The two ministers reaffirmed the abiding determination of the two governments to work for making South Asia an abode of peace, prosperity, moderation and cooperation,' the statement said.

'They highlighted terrorism as the most important security threat facing the region and reiterated their full resolve to combat it,' the statement said.

Spanta also called on Prime Minister Manmohan Singh and met National Security Adviser M.K. Narayanan during his two-day visit to India that ended Tuesday.

In his discussions with Spanta, Manmohan Singh expressed 'India's support for the aspiration of the Afghan people to build a peaceful, prosperous, democratic, and pluralistic nation.'

Manmohan Singh also conveyed 'his best wishes' to Afghan President Hamid Karzai and other leaders of Afghanistan for the forthcoming elections next month and hoped it would would strengthen the democratic process in Afghanistan.