Pakistan Prime Minister Shehbaz Sharif on Monday expressed his willingness to engage in peace talks with India to resolve all outstanding issues between the two neighbouring countries, including Kashmir, terrorism, water sharing, and trade.

Sharif’s remarks came weeks after India and Pakistan agreed to halt cross-border firing that had intensified following the Pahalgam terrorist attack and India’s retaliatory Operation Sindoor. He made the statement in Tehran during the second leg of his four-nation tour.

"We want to resolve all disputes, including the Kashmir issue and the water issue, through negotiations and are also ready to talk to our neighbour on trade and counter-terrorism,” he said.

Following India’s precision military strikes earlier this month, reports suggested a renewed willingness from Islamabad to engage in talks with New Delhi. However, Prime Minister Narendra Modi has made it clear that any dialogue with Pakistan will be limited to the return of Pakistan-occupied Kashmir and the issue of terrorism.

"Terror and talks cannot happen at the same time. Terror and trade cannot take place. Blood and water cannot flow together. I want to tell the international community that if there will be talks between India and Pakistan, it will only be on terrorism and POK," he said.

India has also made it clear that any talks between the two countries must remain a bilateral matter, without the involvement of any third party, in an apparent response to US President Donald Trump's offer to mediate between India and Pakistan on the Kashmir issue.

Addressing a joint press conference with Iranian President Masoud Pezeshkian, the Pakistan Prime Minister, however, warned that Pakistan would respond if India chose the path of war.

“But if they choose to remain aggressors, then we shall defend our territory like we have done a few days ago,” he said. “But if they accept my offer of peace, then we will show that we really want peace, seriously and sincerely”.

India launched Operation Sindoor on May 7, targeting terror camps in Pakistan and Pakistan-occupied Kashmir, two weeks after Pakistan-based terrorists killed 26 people in Jammu and Kashmir’s Pahalgam. In response to India’s strike, the Pakistani army launched drone and missile attacks towards India, prompting further retaliation from New Delhi, which targeted multiple Pakistani army bases.

On May 10, Pakistan reached out to India for a ceasefire. Following military-level talks, both countries reached an understanding to halt hostilities.