"We know how to secure our borders, however, lasting peace can only be attained through solving the Kashmir issue," he said while speaking to media in Sialkot, according to Express News.
The former Defence Minister said Pakistan's options become limited if India was not willing to meet us halfway.
"We want to dissipate tensions with India but they are not willing to do the same," he added.
Pakistan, he added, wants friendly relations with Afghanistan as well but India must also play a part to make it a reality.
Asif said peace between the two countries was intertwined with Kashmir dispute and in light of the UN agreement, the people of Kashmir want the right to vote for self-determination.
"Our foreign policy will be in accordance with the wishes of the people, and in view of what is in the best interest of Pakistan," he said. "Both countries want the continuity of the Indus Waters Treaty, however, any violation would worsen relations even further."