The four-day talks came as Taliban waged an unprecedented winter campaign of violence.
"It is important that no preconditions are attached to the reconciliation process, as it will create difficulties in bringing Taliban to the negotiating table," Prime Minister Nawaz Sharif's Advisor on Foreign Affairs Sartaj Aziz said at the meeting.
The group was set up last year to facilitate the reconciliation process in the war-torn country.
"It is therefore important that no preconditions are attached to the reconciliation process," Aziz added.
"Proper sequencing is required in the negotiating process," he said, adding that "threat of use of military action against the group will cause hindrances and cannot proceed the offer of talks to all groups."
He said that it was important to undertake a realistic assessment of the opportunities as well as anticipated obstacles in the process and then develop clarity on how to proceed further.
Afghanistan hoped that Pakistan will share a list of insurgents who are ready for peace talks.
Apart from Aziz, Afghan Deputy Foreign Minister Hekmat Karzai and Pakistani Foreign Secretary Aizaz Chaudhry, US special representative for Afghanistan and Pakistan Richard Olson as well as China's special envoy on Afghanistan affairs Deng Xijun attended the meeting.
The first round of talks was held in July but the process was suspended in the same month after news of Taliban chief Mullah Omar's death was announced.
It is believed that the process of peace in Afghanistan
will be a test for all parties due to strong opposition within Afghanistan towards any peace with the Taliban.
Some analysts believe that the added presence of China and the US may help overcome mistrust between Kabul and Islamabad, though it remains unclear when the Taliban themselves will return to the negotiating table. They are not part of this week's talks.
The Taliban, who were ousted in 2001, remain split on whether to take part in talks.
The expansion of the Taliban insurgency in Afghanistan has fueled regional and international concerns that the upcoming spring fighting season may lead to even more bloodshed and instability in the war-shattered country.
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