According to Shah, a country's performing arts should reflect its cultural heritage. But Pakistan's movie industry and theatre had not done justice to the nation, which he said was a tragedy.
"If Pakistani theatre wants to evolve, it has to define its own identity, which must project its historical identity," he said at a press conference here.
The actor, who is here to perform in Pakistani cities, felt that people-to-people contacts would yield more positive outcome than bilateral pacts between Pakistan and India.
"People-to-people contacts between Islamabad and New Delhi will go a long way to eliminate the existing distance."
He also said that matters of the past should be left behind and not be repeated or refreshed.
"I have no words to express the love people of Pakistan have conferred on me. It will tantamount to sprinkling salt on wounds to speak about the bitter past.
"(Talking about) Pakistan-India cooperation (from) a luxurious hotel will serve no cause. That is why we should work at the grassroots to bury the acrimony between the people of Pakistan and India," said Shah.
He called upon artists of both countries to play their role in improving India-Pakistan relations. He said he had no intentions to join the political scenario.