Indian Prime Minister Narendra Modi on Monday congratulated newly-elected Pakistan Prime Minister Shehbaz Sharif, saying that New Delhi "desires peace and stability in a region free of terror".

Shehbaz was sworn in as the 23rd prime minister of Pakistan in a ceremony hosted at the Aiwan-i-Sadr earlier on Monday, bringing an end to political uncertainty that had gripped the country for weeks.

"Congratulations to H. E. Mian Muhammad Shehbaz Sharif on his election as the Prime Minister of Pakistan. India desires peace and stability in a region free of terror so that we can focus on our development challenges and ensure the well-being and prosperity of our people," Modi tweeted.

In his maiden address to the Parliament as the prime minister, Shehbaz had expressed a similar sentiment towards India.

"We want good relations with India but lasting peace can not be achieved until the resolution of the Kashmir issue," Shehbaz said, adding: "I suggest to Prime Minister Modi to sit down and talk about the Kashmir issue as per the UN resolutions.”

The prime minister said that neighbours are not a matter of choice, but something you have to live with. "We want cordial ties with India but without the resolution of the Kashmir dispute the ties cannot be improved,” he added.

“We [Pakistan] will continue to provide diplomatic and moral support to Kashmiris."