"We urge Prime Minister not to abandon his Pakistan policy -- We express strong disapproval of measures that undermine the peace process," he said while addressing party members here.
"The recent developments have come as a severe setback to the aspirations of the people of Jammu and Kashmir," he said.
The move to suspend the implementation of new liberal visa regime and virtual deportation of Pakistan hockey players has sent negative signals to the people of Jammu and Kashmir, he said.
"Now people of the state area looking up to the Prime Minister to carry forward the peace process that has impacted our lives in a positive manner in the last ten years," the PDP leader said.
He said the NDA and UPA governments had invested heavily in the peace process and the effort should not go in "waste".
Prime Minister must intervene to restore peace and develop more healthy relations between the two nations, he said.
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He said the ceasefire between the two Armies had brought back normalcy and happiness for the entire belt from Kathua to Kargil which had become used to incessant shelling and exchange of fire for decades and fear that forced them into bunkers and safe houses.
"Same was true of the people living on the other side of the border and the two governments owed it to this vulnerable population to de-escalate the tension and restore normalcy on the LOC", Mufti said.
Mufti said it was disheartening for the state that the Prime Minister has indicated the end of "business as usual" with Pakistan in the wake of the unfortunate incidents on the LOC.
Referring to ups and downs in any engagement with Pakistan, Mufti said there was no doubt "complexities of our history would make this no easy task."
He said people of the state are in direct line of fire and it is this state that has taken the brunt of wars.
"It was not bullet for bullet policy but restoration of democratic process, good governance and reconciliation with Pakistan that brought about change in J&K", he said.