He also pitched for economic ties between India and Pakistan to go beyond trade to mutual investment.
"Terrorism is a big issue. We have suffered a lot in the last 35 years and lost as many as 50,000 lives. It's a common challenge," Basit said during an interactive business meeting organised by industry body FICCI.
"If you have faced it in Mumbai, then we too have faced it. If you have complaints, then we too have our own," he said.
Acknowledging the "complex" relations between the two countries, he said,"Peace is of mutual interest and can be achieved through dialogue... (but) there has been no dialogue for almost a year."
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The top Pakistani diplomat in India said political inhibitions, doubts and trade barriers had resulted in "minuscule" trade between the two neighbours.
He stressed upon the need for greater "inter-dependence" for the economic ties to be sustainable.
In the absence of inter-dependence, Basit said," it may continue for a while, but it will not sustain for a long period."
"But still, I would say that since the end of cold war and (beginnnig of) globalisation, the two countries have come a long way," he said.