LAHORE PML-N Quaid Mian Nawaz Sharif has underlined the need for peaceful co-existence with India in the larger interests of both the nations. While talking to Indian High Commissioner, Sharat Saba-rwal, who called on him at his Raiwind residence on Thursday, Nawaz said the dream of peaceful co-existence between the two can be realised by adopting the policy of holding meaningful dialogue on all issues between them. He said Pakistan and India must settle down the outstanding issues including the core issue of Kashmir in accordance with the wishes of the Kashmiri people. Nawaz said that both the countries need to show flexibility on the Kashmir issue in order to reach a solution acceptable to all the three concerned parties. He stressed low expenditure on defence sector as well as to end arms race in the region. He said if that happened, the resources would be diverted to improving quality of life of the people of the region.