The issue will be discussed during bilateral meeting between Prime Minister Narendra Modi and Afghan President Ashraf Ghani on the sidelines of the two-day Heart of Asia conference which began here today.
There is a possibility that the pact will be finalised by tomorrow itself.
In the meeting, Afghanistan is likely to seek enhanced supply of military hardware from India and more help for strengthening its armed forces.
Sources said both India and Afghanistan were keen to finalise the air cargo agreement as soon as possible and that the broad contours of the pact are already worked out.
India and Afghanistan have been exploring various connectivity projects for greater two-way trade.
In May, India, Iran and Afghanistan had signed an agreement to set up a trade and transport corridor with Chabahar in Iran as the hub.
The sea-land route of Chabahar Port is designed to bypass Pakistan and the project is seen as India's effort to counter China's plan to develop Gwadar port in Pakistan.
Last week India had given to Afghanistan the last of the four military helicopters.
India has trained hundreds of Afghan security personnel but has been adopting a cautious approach in providing weapons.
Afghanistan has also been seeking India's assistance in making functional Soviet-era helicopters and transport aircraft which were not in flying condition.
India has a strategic partnership with Afghanistan and is implementing projects worth USD 2 billion to help rebuild the country's infrastructure.
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