ISLAMABAD (AFP) - The United States handed over to Pakistan a unique collection of 2,000-year-old Buddhist artefacts which had been smuggled out of the country two years ago.

A shipment of 38 artefacts from the Gandhara civilisation, dating back to the first century, were seized by officials from the US Department of

Homeland Security at Newark, New Jersey in September 2005.

The artefacts were repatriated in January and a formal handing over ceremony was held at a museum in Islamabad on Thursday.

The artefacts were repatriated in January and a formal handing over ceremony was held at a museum in Islamabad on Thursday.

"This is a great day for Pakistan," US Ambassador Ryan C. Crocker said.

"It is a very rich and historical collection beyond price and we are very happy to have played a role in restoring this legacy to the country that produced it," he said.

Minister for Culture Gulab Jamal, who received the consignment, praised the efforts made by US authorities in recovering the ancient pieces.

"It is encouraging to see that the US is determined not to bow down to international gangsters. No country should be denied of their cultural identity and cultural wealth," the minister said.

The prized collection, illegally excavated from sites in northwestern Pakistan, included sculptures depicting Buddha in different poses, a rare cup from the second century and a variety of cosmetic trays.

"Heritage of this value and consequence must be properly researched and investigated to determine true origin of goods," Ambassador Crocker said.

The Department of Homeland Security along with archaeological experts from Pakistan and the US conducted investigations to determine its origin, he said.

Chief of the department of archaeology and museums Fazal Dad Kakar told AFP that the artefacts would be displayed at various Pakistani museums on a rotational basis.