Pakistan Prime Minister Mir Zafarullah Khan Jamali wants to improve relations with India.
"Why should I have a hostile neighbour? A country that is stronger than us, a country that is bigger than us. These are the facts and we have to admit that," he told the BBC World, in its programme Question Time Pakistan.
But he refused to compromise on the Kashmir issue.
"As far as I am concerned, Kashmir is the lifeline. It's not just a political issue; it's an economic issue too. It's lifeline as far as Pakistan is concerned and we have to keep that right in front of us and then decide," he said.
"I am a person who does not compromise on principles. Issues, we can compromise on ... The major principle between India and Pakistan is Kashmir. That is the principle. On principle, you cannot compromise. On issues, you can," he said.
Replying to a question on New Delhi's claim that Pakistan is not stopping cross-border infiltration, Jamali said, "They've been saying it for years and years. Pakistan has vast borders and with all the military might India has put on those borders, even then they are saying that we are still crossing over. Doesn't make sense at all."
At times, Jamali claimed such instances happen without any connivance as far as Pakistan is concerned.
"We have said very openly that we do not have training camps, we do not send people across, we have nothing to do with the whole structure, but the moral help has been there with the Kashmiris. They have suffered a lot... India is very far ahead as far as the media is concerned so it tries to convince people; they try to depict their point of view, which we have not been able to cover. We shall try to do that," he said.