"Regional peace will remain under threat until there is a balance in armament...We want peace and for that, both countries must put a cap on their defence spending," Sharif said.
"No one, apart from common people, has suffered from the wars between us," Sharif was quoted as saying by The Express Tribune during an interaction with a delegation of the Pakistan Journalists Forum in Jeddah Sunday.
The premier, currently in Saudi Arabia on a private visit, said he would draft a "comprehensive policy" on Kashmir and other issues after consulting all political parties. Replying to a question on Afghanistan, Sharif said Pakistan will adopt a policy of "non-interference" while dealing with its neighbour.
Pakistan will not support any particular group in Afghanistan at the expense of others, he said. Islamabad supports the Doha process because it is expected to serve regional and international interests, he added.
Pakistan was confronted by several challenges like terrorism, sectarianism, power shortage, economic woes and depleted resources, Sharif said. These challenges would be solved with mutual cooperation, he said.
On another question, Sharif said a commission is investigating allegations against former military ruler Pervez Musharraf. He said he would refrain from commenting on the matter till the commission submits its report. However, Sharif said he did not believe in the "politics of revenge".