President Rouhani made the remarks in a meeting with his Afghan counterpart Ashraf Ghani on Saturday on the sidelines of Shanghai Cooperation Organization (SCO) Summit.
He described a secure and stable Afghanistan as required for regional security and development.
Islamic Republic of Iran will spare no effort in maintaining peace and fighting terrorism in Afghanistan, President Rouhani added.
Over the past 40 years, Iran has always stood by Afghanistan, he said, adding that both countries enjoy common culture, security and trade interests.
Expressing hope over facilitating the implementation of cooperation agreement between the two countries, President Rouhani said that Iran is determined to develop relations with its neighbors, especially Afghanistan, and setting up joint investment in various projects namely transit transportation infrastructure.
Elsewhere in his remarks, Iranian president hailed reinforcing cooperation in political, economic, security and cultural fields.
Transit and connecting regional countries such as Central Asian countries to Persian Gulf is of importance, he said.
Chabahar Port plan which is underway with India and Afghanistan is a big step in reinforcing regional transit ways, he reiterated.
President Rouhani also underlined both countries’ support of private sector, urging political and economic attempts for promoting Khaf-Harat railway.
Referring to the US withdrawal from Iran deal, he said Trump’s act was not only pulling out of a multilateral accord, but breaching United Nations Security Council resolutions.
Rouhani also welcomed Ghani's initiative for peace declaration.
Ashraf Ghani in a message declared a nine-day ceasefire in the country called for in a fatwa issued by Afghan Ulema.
The Government of the Islamic Republic of Afghanistan announces ceasefire from the 27th of Ramadan until the fifth day of Eid-ul-Fitr following the historic ruling [Fatwa] of the Afghan Ulema, he said.
President Rouhani also called for fighting narcotics smuggling and terrorism in the region.
President Ghani, for his part, urged both sides to accelerate economic relations.
He said that Afghanistan considers developing relations with Iran in line with its national interests.
'Developing Chabahar Port is not only important for Iran, Afghanistan and India, but for promoting ties between China and Central Asia,' President Ghani added.
Elsewhere in his remarks, the Afghan president expressed readiness for maintaining all-out ties with Iran in fighting drug smuggling.
Referring to nine-day truce he said we will continue fighting Daesh seriously.
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