Clinton made the remarks during a meeting with Gilani late Sunday evening, said a statement issued by the Pakistan prime minister's office.
Gilani said Pakistan wants "good neighbourly relations with India" and would like both sides to "address all issues and disputes between them peacefully".
The comments of the two leaders came days after the foreign ministers of India and Pakistan failed to make headway in talks held in Islamabad on July 15. The two ministers have engaged in a war of words since the talks ended in deadlock.
During his interaction with Clinton, Gilani said the discussions in different sectors as part of the Pakistan-US Strategic Dialogue had prepared the grounds for taking the bilateral relationship beyond the war on terror and American aid provided under the Kerry-Lugar Act.
Gilani said that he was hopeful the fifth round of the Strategic Dialogue, set to co-chaired by Clinton and Foreign Minister S M Qureshi will lead to greater US assistance and cooperation for building water reservoirs, enhancing power generation capacity and addressing the root causes of terrorism like illiteracy, poverty and under-development.
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