She said it is time for Pakistani political leadership to reciprocate and consider giving peace a chance in the region.
Mehbooba, who conducted an extensive tour of areas like Nowshera, Poonch and Rajouri along the LoC affected by Pakistani shelling, expressed grave concern over the plight of the people living near the frontiers where a "distressing situation" has been created with loss of lives and destruction of properties.
"There is urgency of de-escalating the situation. There is no alternative to peace and reconciliation and New Delhi and Islamabad should take immediate and effective measures to revive the process of comprehensive and composite dialogue," she said.
Instead of squandering their resources on "meaningless conflict", India and Pakistan can be of great help to each other in their fight against the common challenges of poverty and economic deprivation in the region.
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Citing examples of war-like situations in various countries like Afghanistan, Syria, Iraq, she said wars have resulted in complete destruction of once most prosperous countries and annihilation of their cultures and civilizations.
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Mehbooba said when the nation was divided on the basis of religion in 1947, Jammu and Kashmir, rising above religious lines, believed in brotherhood and inclusiveness.
"However, it is since these last 70 years of that division that the state has been facing this issue that has resulted in huge challenges to it," the Chief Minister said.
She said the government is alive to the situation and various measures are being taken for the people affected by the shelling.
The Chief Minister said under the new scheme announced by the government of India, next of kin of those who have died in the border firing shall get an ex-gratia relief of Rs 5 lakh.
She said the families who lost their cattle will also be compensated under SDRF norms.
The Chief Minister also visited the make-shift camp where the people from the affected border villages have been shifted and took stock of the arrangements put in place for them.
She asked the officers concerned to ensure that all necessary arrangements are made to make their stay comfortable including ration, power, water and bedding.
Later, the Chief Minister also chaired meetings of district administration separately at Rajouri and Poonch wherein she was briefed by the respective Deputy Commissioners about the measures taken to address the issues arising out of border shelling.