British Foreign Secretary Boris Johnson arrived in Islamabad on a two-day official visit on Thursday.
Addressing a joint press conference alongside Adviser to Prime Minister on Foreign Affairs Sartaj Aziz, Johnson said the UK country calls for an end to violence in Kashmir but added at the same time that it was not for his country to "prescribe a solution or act as a mediator" in the conflict of the disputed region.
"The longstanding position of the UK is that is it for India and Pakistan to find a lasting solution to the situation in Kashmir taking into account the wishes of the Kashmiri people."
"Of course we are concerned about recent incidents on both sides of the Line of Control in Kashmir and we call for an end to the violence," he said, urging Pakistan and India to exercise restraint and maintain a dialogue.
"Look at the incredible human potential of Pakistan and its neighbours, and then imagine what the future could be like if this was sorted out."
He said the "mutual sequestration" of the India-Pakistan economies was holding back the region from becoming a "boom zone".
Aziz said Pakistan appreciates Britain's assistance in key areas specially education and health sectors.
He said Prime Minister Nawaz Sharif has invited British PM Theresa May to visit Pakistan in 2017 and "we eagerly look foward to this visit".
'We could do so much better'
The British foreign secretary said it is vital to encourage trade and commercial-economic interpenetration between UK and Pakistan.
"Consider the size of the Pakistan economy...look at the size of the UK economy. We could do so much better than 2.5 billion pounds a year of bilateral trade."
"We have agreed to launch a programme of business engagement focusing not just on enhanced strategic dialogue, but also on the opportunities presented by celebrations of Pakistan's 70th anniversary next year," he said.
'Want to consolidate rock solid Pak-UK friendship'
Johnson earlier met Aziz at the Foreign Office (FO) to discuss bilateral ties between Pakistan and the UK, FO Spokesman Nafees Zakaria said on Twitter.
During the meeting, Johnson said he is excited to be in Pakistan and wants to "further consolidate rock solid friendship between our two countries".
He said he wants to concentrate on boosting trade and investment between UK and Pakistan and build the confidence of British investors in Pakistani market.