The two leaders discussed the situation in Afghanistan, and Sharif reaffirmed Pakistan's support for the Afghan peace and reconciliation process.
The statement said “substantial progress” had been made in bilateral ties in recent months.
Recent high-level exchanges, including Sharif's visit to Washington and meetings of the Working Groups on Defence and Security and Non-proliferation and Disarmament, had “greatly helped in building trust”.
Hagel and Sharif also reviewed defence and security cooperation and explored ways to expand ties in this field.
Sharif stressed the need for long-term and broad-based defence cooperation on the basis of mutual interest.
Soon after his arrival, Hagel drove straight to Army Headquarters in Rawalpindi for talks with Gen Sharif.
“Issues concerning defence relationship, Pak-US bilateral ties and regional stability came under discussion,” said a brief statement from the Pakistani military.