The PDP chief said the peace process should start in the state and "first we should talk within us" as "our people are fighting against each other".
"I request you to stand united. The relations between India and Pakistan are bad but they cannot remain the same always.
"Both the nations have to live and die together. We have to create such a good atmosphere in Jammu and Kashmir that India and Pakistan are compelled to come together," Mehbooba said here.
Mehbooba said Jammu and Kashmir bears the direct brunt of animosity between India and Pakistan. "There is a direct impact of that on the situation here... (but) the enmity is not going to continue," she said.
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The Chief Minister said Sayeed always wanted to take the state out of "this morass because till we do not get out of this difficulty, development is not possible".
"That is why he wanted to take the developmental process forward along with the political process," she said, adding she and her party are trying to implement his programme which is part of the agenda for alliance with BJP.
She said there were a number of issues to work on like water, power and ration and the "biggest" one of unemployment but "all this comes to a standstill when our political process stops".
"The political process started by Sayeed in his first term from 2002-05 saw dialogue. Roads were opened and there was a good atmosphere between India and Pakistan, there was ceasefire.
"But because of the governments here and in Delhi, that process could not be taken forward," she lamented
Mehbooba said that her government is now trying to bring back on track the peace process and noted that she had written to separatists to meet the parliamentary delegation which visited the state last year.
"But we did not get a desired response. I am trying that together we create such a situation so that a process is started.
"First we should talk within us. Our people are fighting against each other. Our children should be in schools, with pens in their hands. Sometimes, certain elements thrust stones in their hands in place of bats and balls.