Talking to reporters here, she said, "Both India and Pakistan need to address the problem of terrorism and alienation of youth. If we keep fighting then this would pose a threat to our existence."
Terming Muslim nations as the worst victims of terrorism, She said, "Nations across the world are coming closer, terrorism has emerged as the biggest challenge for all countries. Muslim nations are the worst victims of terrorism."
She lauded the resumption of peace talks between India and Pakistan.
"It is good that talks have resumed again. Terrorism is the biggest challenge for us. See what is happening in Syria, Libya and Pakistan. Western countries too have now such problems," she said.
More From This Section
"I think it (terrorism) is a global phenomenon. It is not confined to a region or a country, it is now global. Pakistan is facing terror blasts and they are using drones to eliminate terrorists," she said.
"Pakistan needs to take lessons as to how long its will fight as it has lost three wars (with India) and we need keep good relations with out neigbhours," she said.
She expressed optimism and lauded the efforts on Indo-Pak engagements for peace talks despite the deadly terrorist attack on Pathankot IAF station.
"The talks have begun. The Prime Minister had gone to Lahore where an informal meeting was held. After that, unfortunately the Pathankot incident took place, but despite that talks went on. Even recently, the talks were held," Mehbooba said.
"Peace is only interest of people of Jammu and Kashmir. We want good Indo-Pak relations as if affects us," she said.
"We are facing difficult situation in the state.... We
hope that we will come out of this situation. We pray to God that such a situation is not repeated again in future," Mehbooba said.
"But I am happy that people of Jammu have ensure peace and communal harmony. Situation in Kashmir is bad. There was violence and bloodshed. But the people of Jammu ensured communal harmony and brotherhood," she noted.
She said violence has changed nothing on political spectrum of Jammu and Kashmir over the years and has only brought mayhem, miseries, economic disaster, academic breakdown and social disorder to the state.
Maintaining that violence will not help resolve issues, the Chief Minister said that peace and dialogue is the only way forward towards addressing the Kashmir imbroglio.
"Threads need to be picked up from where these were left by former Prime Minister Atal Bihari Vajpayee in 2005, when a serious effort was made both on external and internal fronts to resolve the Kashmir issue through a credible and meaningful dialogue and confidence building process," she said.
"We entered into alliance (between PDP and BJP)in difficult circumstances. We did not entered into coalition for the power and the government", She said.
The Chief Minister said the coalition was formed to ensure that Jammu and Kashmir is brought out from the nearly 70- year-old turmoil and misfortune.
"There was unrest in 2008 and it was followed by 2010 and now in 2016 there is again this violent unrest. We are yet to come out of these misfortunes," she said.
Hailing the step taken by Modi of going to Lahore which was followed by Union Home Minister Rajnath Singh's visit to Islamabad, Mehbooba said, "I hope that Pakistan will understand sooner or later and will realize that targeting each other or leveling allegations will not solve any issue.
"Both countries should hold the hand of each other and carry forward the step taken by PM Modi."
(Reopen DEL76)
Mehbooba recalled that Vajpayee had undertaken a bus ride to Lahore after which then Pakistan Army Chief Gen Pervez Musharraf had engineered Kargil aggression.
However, Musharraf was later forced to come to India on aninvitation of Vajpayee, she added.
"Again Parliament attack took place which took us close to the war. Even after these incidents, Vajpayee Ji open heartedly extended hand of friendship to Pakistan from Kashmir soil for bringing the much-needed peace and normalcy and progress for people of J&K," she said.
"But unfortunately, Mufti Sayeed government changed in J&K and later in Delhi, there was change of the government led Atal ji and the result was that healing touch policy with good governance was stopped and today we are here again.