American Marconi Wireless News - Afghanistan-Pakistan ceasefire holds after deadly border clashes

In Spin Boldak, a flashpoint on the Afghan side, an AFP journalist saw shops reopening and residents returning to homes they had fled during the fighting.

The 48-hour truce was aimed at allowing time to "find a positive solution... through constructive dialogue", according to Islamabad.

Pakistan's Prime Minister Shehbaz Sharif said on Thursday evening that whether the temporary truce would be extended now depended on Kabul's response.

"If in 48 hours they want to resolve the issues and address our genuine demands, then we are ready for them," Sharif told his cabinet, reiterating that Pakistani Taliban militants should be eliminated and that Afghan territory not be used to plot attacks.

Pakistan is facing a resurgence of attacks against its security forces on its western border with Afghanistan, led by the Pakistani Taliban and its affiliates.

Spin Boldak's health director said 40 civilians were killed and 170 wounded on Wednesday. The UN mission in Afghanistan reported earlier that at least 18 were killed and more than 350 wounded.

"Our houses were bombed, a child was wounded. I heard the plane myself," Abdul Zahir, a 46-year-old resident, told AFP. "It's terrifying."

Hundreds of residents and Taliban officials attended the funeral of seven members of the same family in Spin Boldak, an AFP journalist saw.

Islamabad accuses Kabul of sheltering militants who plan their frequent assaults from Afghan soil -- a charge the Taliban government denies.

Pakistani officials on the northern and southern border with Afghanistan told AFP on Thursday that "no violence was reported overnight, and the ceasefire remains in effect".

A senior security official in Peshawar told AFP: "Additional paramilitary troops have been deployed to counter potential... militant activity that could jeopardise the ceasefire."

Blasts were reported in the capital Kabul shortly before the truce was announced, as well as in the southern province of Kandahar, where the Afghan Taliban's shadowy supreme leader lives.

UN rights chief Volker Turk welcomed the truce and urged both sides to prevent further harm to civilians and "commit to a lasting ceasefire".

- 'Precision strikes' -

The first explosions that struck Afghanistan last week -- blamed by the Taliban on Islamabad -- occurred while Afghanistan's top diplomat was on an unprecedented visit to India, Pakistan's longtime rival.

Taliban authorities then launched an offensive at the border, prompting Islamabad to vow a strong response of its own.

Exchanges of fire from Saturday killed dozens of people, with renewed violence on Wednesday also causing civilian casualties, according to Kabul.

The Taliban government officially blamed Wednesday's blasts in the Afghan capital on the explosion of an oil tanker and a generator.

However, Pakistani security sources said the military targeted an armed group with "precision strikes" in Kabul, as well as hitting Afghan Taliban bases in Kandahar.

There were blackouts overnight and into Thursday morning in some areas of Kabul, caused by electricity cables damaged in the explosions, AFP journalists in the city said.

AFP journalists saw municipal workers carrying out repairs on Thursday morning in a Kabul neighbourhood, where the road was charred and apartment windows had been blown out.

At least five people were killed and 35 wounded in Wednesday's explosions in Kabul, an Italian NGO that runs a hospital in the city said.

"We started receiving ambulances filled with wounded people," said Dejan Panic, EMERGENCY's country director.

Ten people were in critical condition, with injuries including shrapnel wounds, blunt trauma and burns, the NGO said.

H.E.Young--AMWN