The Iranian president was given guard of honour on arrival at the President House where President Zardari welcomed him at an impressive ceremony.
The Iranian president is visiting to attend Pakistan-Iran-Afghanistan trilateral summit in Islamabad. On the sidelines, he is likely to meet PM Gilani. Several bilateral agreements are also expected to be signed during his visit.
Earlier in the day, President Zardari and Prime Minister Gilani welcomed Afghan President Hamid Karzai at the President House.
In a meeting at the Prime Minister House, Gilani and Karzai discussed a range of issues, including the regional situation and bilateral ties, which have been hit by mistrust following recent cross-border attacks.
Karzai met with Pakistan s Prime Minister Yusuf Raza Gilani and the army and intelligence chiefs and discussed efforts to seek reconciliation with the Taliban to end the 10-year war. But the world is currently focused on Iran s standoff with the West.
Tehran on Wednesday proclaimed advances in nuclear know-how, including new centrifuges able to enrich uranium much faster, a move that may heighten its confrontation with the West over suspicions it is seeking the means to make atomic bombs.
Iran s resolve to pursue a nuclear programme showed no sign of wavering despite Western sanctions inflicting increasing damage on its oil-based economy.
Israeli Defence Minister Ehud Barak said on Thursday Iran s announcement of new nuclear achievements was exaggerated and meant to fend off action against the Islamic republic.
"They are describing a situation that is better and more advanced than the one they are in, in order to create a feeling among all the players that the point of no return is already behind them, which is not true," Barak told Israel Radio.
Tension between Iran and the West over Iran s nuclear work has mounted since November, when the United Nations
International Atomic Energy Agency said Tehran appeared to have worked on designing a nuclear weapon.
Widely believed to be the Middle East s only atomic power, Israel has said a nuclear-armed Iran would be a threat to its existence. Both Washington and Israel have not ruled out military action to stop Tehran developing atomic bombs.
Israel accused Iran and its Lebanese militant ally Hezbollah of being behind twin bomb attacks that targeted Israeli embassy staff in India and Georgia on Monday. Tehran has denied involvement in the attacks.
Thai investigators said on Wednesday they believe they have found a link between the New Delhi bombing and the one in Bangkok on Tuesday.
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