TEHRAN (Agencies) - Observing that it has been pursuing a policy of 'positive and substantial' engagement with Pakistan, India on Sunday said it wishes to address all issues that have affected bilateral ties and make progress towards enhancing physical connectivity and upgradation of economic ties. Indian External Affairs Minister Pranab Mukherjee said here that New Delhi wanted to see peace, stability and development in Pakistan as it is in India's interest. He, however, said terrorism is a major problem for the region as well as world and in this regard referred to the attack on Indian Embassy in Kabul in July in which five personnel of the mission, including two diplomats, lost their lives. "In recent years, India has pursued a policy of positive and substantial engagement with Pakistan," Mukherjee said inaugurating a seminar on 'India and Iran: Ancient civilisations and modern nations'. "We wish to address issues that have affected our ties over the last several years," he said, adding, "we also wish to make progress in areas such as enhancement of physical connectivity and upgradation of economic ties." He said through the mechanism of the composite dialogue, the two countries have addressed a number of serious issues of bilateral interest. On terrorism, Mukherjee said it constitutes one of the 'most serious threats' to global peace. He said "terrorists may claim to act on behalf of religion, but in truth they have no religion, because the essence of religions is peace and universal brotherhood, and not violence and the violation of human rights."