Sajjad, on a private visit to India, said building trust was necessary for improving relations between the two countries.
The Kashmir issue could be resolved through continuous dialogue process, the 72-year-old ex-acting President said after paying obeisance at the Golden Temple Complex here.
Both the nations should initiate talks in the larger interest of their people, Sajjad said.
Stressing the need for peace between the two countries, he called for liberalisation of visa norms on both sides.
Sajjad, who served as the acting President of Pakistan twice, also visited his maternal grandfather's house in Jalandhar where he was born.
He was here with his wife and other family members.