Besides confidence-building measures, a "backdoor diplomacy channel was working to bring both the neighbours closer", Aziz was quoted as saying by The News daily.
He further said there was no "more deterioration in relations and things had greatly improved". Aziz made the remarks during a debate in the Senate or upper house of parliament yesterday.
His remarks came against the backdrop of a downturn in ties over ceasefire violations and fierce exchanges of fire along the Line of Control.
For the first time, the civilian and military leadership tried to forge consensus by taking all stakeholders on board, Aziz said.
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The concept of strategic depth had no importance at all and Afghanistan was free to make decisions about its political future on its own, he said.
The government is working on strengthening and broadening economic and strategic relations, keeping in view the situation that will arise when US forces pull out of Afghanistan next year, he said.
Referring to Pakistan's role in talks at Doha with the Afghan Taliban, Aziz said Islamabad was only a facilitator and it seemed the process would not progress any further after the Taliban put some conditions that were not acceptable.
On the resolution passed by parliament against the execution of Jamaat-e-Islami leader Abdul Quader Mollah in Bangladesh, Aziz said the parliament was sovereign and could pass a resolution on this matter.