Sharif made the remarks when Foreign Secretary S Jaishankar called on him during his Islamabad visit as part of the 'SAARC yatra' he is undertaking on the directions of Prime Minister Narendra Modi.
Sharif said it is important to establish good neighbourly and cooperative relations between India and Pakistan which is consistent with his vision of a peaceful neighbourhood in South Asia.
According to a statement issued by the Prime Minister's Office here, Sharif expressed confidence that today's talks between the Foreign Secretaries of the two countries will result in charting the way forward in bilateral relations.
"Both the countries need to start a new chapter in their relationship by working towards resolving all outstanding issues through dialogue," he said.
Sharif stressed that it is imperative that the leadership in the two countries should rise to the expectations of the two peoples.
Noting that the South Asian region has suffered enormously due to tensions and unresolved disputes despite being blessed with enormous resources, Sharif said the people deserve to live in peace and reap the benefits of economic development.
He said it would be important that the bilateral discussions, whenever held, would seek to address each other's concerns in areas where the two countries differ and work together in areas where both the countries agree.
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