In strong criticism of Pakistan, he said almost all major iniatiatives of India in SAARC -- be it enhancing connectivity or having deeper engagement in some other key areas -- did not fructify due to hurdles posed by Islamabad, adding terrorism is central to the problem.
The Foreign Secretary described Pakistan as a country which not only has a "different view of the region but also has an atttitude towards use of terrorism as a instrument of policy of diplomacy which makes it a difficult partner for all of us."
Talking about government's neighbourhood first policy, he said though India has been sincere in ensuring development of the region, its politics often come into play.
"While we all agree that we should move forward, it does not always go smoothly as domestic politics of our neighbours pose challenges. We have learnt to be patient and the mix of diplomacy and patience did see through difficult situations," said Jaishankar.
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"What you have seen in the last two years is a great effort on our part to reach out to Pakistan and find common ground on many issues that face the relationship.
"The last time this was done in December when the Foreign Minister went for the Heart of Asia conference and we agreed to have comprehensive bilateral dialogue which we hoped would begin in January this year," he said, adding then Pathankot terror attack took place.
The Foreign Secretary spoke about India's ties with the
US, Russia and China as well as with various multilateral forums, adding there has been a marked shift in New Delhi's external engagements in the last two years.
He cited completion of the Indo-Afghanistan Freindship Dam and Parliament building constructed by India in Kabul as reflection of changing approach of the government in implementing major projects abroad.
The Foreign Secretary said ties with the US, Japan, Russia and China have improved significantly, while there was speedy progress in ramping up cooperation with Africa.
"I think certainly, speaking from our perspective, whether a well known terroist who actually proudly accepts that he has undertaken actions against this country is sanctioned by a UN committee or not. This is not a small issue," he said.
Earlier this year, China had blocked India's effort to ban Jaish-e-Mohammad (JeM) chief Masood Azhar by the UN.
He also made a veiled reference to China scuttling India's NSG membership bid, saying New Delhi needed to get greater access to nuclear energy, especially given its commitment at the Intended Nationally Determined Contributions (INDC) climate forum.