"Kashmir issue should be resolved according to the UN resolutions and aspiration of the people of Kashmir," he said in his first address to the parliament.
He said Prime Minister Nawaz Sharif's last week's visit to India to attend the swearing-in ceremony of Narendra Modi as Prime Minister was indicative of a desire to build peaceful relation with the neighbouring country.
The president made his first speech to the joint sitting of two houses of the parliament at the start of the second parliamentary year.
Under the constitution, every new parliamentary year should start with the address of the head of state.
Hussain vowed to end terrorism and build the economy of the county.
The president who belong to the ruling Pakistan Muslim League-Nawaz also highlighted various economic achievements of the government during the last year.