He was addressing the joint sitting of the Parliament at the start of the third parliamentary year.
"Friendly relations with India on the basis of mutual confidence and cooperation are our priority but we want that India must take steps to resolve the Kashmir issue according to the UN resolutions and aspirations of Kashmiri people to provide solid ground for peace in the region," he said.
He also called upon India to resume dialogue process with sincerity and good intention for long-lasting peace.
"We believe dialogue can be held between the two countries on various issues.
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"We are keen on talks with India on an equal footing, he said, adding: "Friendly relations with India, based on equality, are a priority."
Hussain said Pakistan is peace-loving country and wants to have friendly relations with its neighbours on the basis of equality and mutual respect.
Hussain also said that the war on terror will continue till the elimination of the last terrorist as the nation was united to eliminate the terrorists at all costs.
The President said the terrorists are targeting different sects and minorities in different parts of the country and urged the government to protect them.
Hussain said China-Pakistan Economic Corridor (CPEC) was an important project which needs sincere efforts to make it a success for the country's overall socio-economic uplift.