Badal called on Sharif at his residence at Raiwind in Lahore before leaving with his delegation for India through the Wagah land border.
Sharif's political secretary Asif Kirmani said both leaders discussed ways to improve ties between the two sides.
Sharif said the two countries should make efforts for lasting peace between them.
He said they should resolve all outstanding issues through talks.
Badal said the people of both countries were getting closer to each other and the time was not far when the differences between them would be removed.
He said India and Pakistan cannot afford wars and should promote peace.
The Indian politician said he had received "enormous love" from the people of Lahore during his visit.
He invited Sharif and his brother, Chief Minister Shahbaz Sharif, to visit the Indian Punjab.
Earlier, Badal visited Gurdwara Janamasthan in Nankana Sahib, the birthplace of Guru Nanak, the founder of the Sikh religion.
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