In a speech after laying the foundation stone, Khan said Pakistan and India have both made mistakes in the past but they now need to work together to improve ties.
The Indian cabinet approved the building and development of the so called Kartarpur corridor last week, a five kilometer (3.1 miles) long passage to connect two Sikh temples on either side of the border between India and Pakistan due to open in 2019. "There is no other option except friendship", Khan said. He was just talking about peace.
Khan's remarks came a day after External Affairs Minister Sushma Swaraj categorically ruled out possibility of holding talks with Pakistan unless it stops cross-border terror activities.
Expressing his disappointment at the cancellation of a proposed bilateral meeting between the foreign ministers of both countries, Khan said: "I got such a bad response that I felt nearly as if there is no intention for peace... why would anyone be scared of dialogue?"
"The government has focused on encouraging investment, increasing exports, incentivising overseas Pakistanis for sending remittances, and checking money laundering", the premier said.
Khan assured Sikh visitors from India that they will find their worship place and surrounding complex a completely developed structure equipped with all facilities and comforts when they visit Pakistan for the 550th birthday celebration of the Sikh guru.
PM Imran Khan also congratulated Afridi brothers on their joint venture with the Chinese automobile company. He cited the example of France and Germany, which were on opposite sides of the battleground during the Second World War, to make his case for peace. "It will be really insane for both of them to even think about going to war", the Pakistani leader warned.
It added that "Pakistan must fulfil its global obligations and take effective and credible action to stop providing shelter and all kinds of support to cross-border terrorism from territories under its control".
Navjot Singh Sidhu travelled to Pakistan to attend the ground breaking ceremony even though Chief minister of the Indian state of Punjab asked him to reconsider his decision.
India and Pakistan made some headway in improving their relations by announcing to jointly-construct a border crossing for millions of Indian Sikhs who have long desired to visit the shrine of Sikhism's founder, Guru Nanak, which is nestled in Kartarpur, in the Narowal district of Punjab, almost five kilometers away from Pakistan's eastern border.