Speaking at a seminar, Basit said that both neighbours cannot "shy away" from problems that exist.
"Pakistan doesn't wish to live in permanent hostility with India. We are positive and constructive but it takes two to tango," news agency ANI quoted Basit as saying.
"Now it's time we make up our mind as to whether we want status quo or we want to make a new beginning in our relations," he further said.
Yes there are serious problems between our two countries, but we can't shy away from those: Abdul Basit,Pakistan Envoy to India— ANI (@ANI_news) December 8, 2016
The relations between India and Pakistan hit a new low after the attack on an army camp in Nagrota, near Jammu, on November 29.
Seven soldiers, including two Majors, were killed and three terrorists were gunned down during the operation.
The attack was third such big strike after Pathankot and Uri attacks this year.
Interestingly, the attack took place on the day General Qamar Javed Bajwa took over as the chief of Pakistan army from General Raheel Sharif.