European commissioner Chris Patten has begun a visit to Afghanistan and Pakistan.

The EU commissioner for external relations is making an assessment of the political transformation in Afghanistan, and is also set to sign a new aid deal with the Pakistan government.

The four day visit to the region comes as the publication of a new video showing footage of Osama bin Laden has led to renewed speculation over whether the al Qaeda leader is now in hiding on the Pakistan side of the border.

The visit also comes at a time of heightened tensions along the border between Indian and Pakistani controlled Kashmir.

In an effort to support reform under the military regime of Pakistan's president Musharraf, Patten will sign an agreement on a 50 million euro package to assist reform of the financial services sector.

Talks on relations with India will also be on the agenda.

In Afghanistan the focus will be on investigating the best methods for distributing the next tranche of reconstruction and rehabilitation assistance, worth 70 million euros.

Patten will also officially open the European Commission's new office in Kabul.

Ahead of his visit, Patten said the EU was committed to helping Afghanistan over the long term.

"The EU has made a very serious, long-term commitment to working with successive authorities in Afghanistan to give the population of this quintessentially 'failed' state the stable, twenty-first century environment it deserves," he said.

The commission is spending over 200 million euros in Afghanistan this year, but the cash will be conditional on maintaining peace and a representative government, eliminating terrorism and cracking down on drug production.

"During my visit I will be stressing the need to ensure a fair ethnic balance in Afghanistan's fledgling democracy, and the need for the Afghan authorities to work with the IMF to establish a truly effective macro-economic and monetary framework, with sound currency arrangements and transparent budgetary and treasury systems," said Patten.

The commissioner will meet with the leader of the Afghan interim administration, Hamid Karzai, and foreign minister Abdullah Abdullah.

There will also be an important meeting with the Zahir Sha, the recently returned former Afghan King, and the commission preparing the Loya Jirga, the council meeting to be held in June which will decide on the future leadership of Afghanistan.