Islamabad: As the euphoria of Shehbaz Sharif's election as Pakistan Prime Minister following a no-confidence motion against Imran Khan fades, the enormity of the challenge that Khan has bequeathed to the present regime will begin to hit home.

A European think-tank, in a commentary, argued that regional peace in the Indian subcontinent might be one of the key objectives of the new government that has deposed Imran Khan.

In addition to the disillusionment with Imran Khan, Pakistan's all-powerful military establishment's publicly articulated inclination towards better relations with its neighbours, especially with India, could also have played a role in its siding with an accommodative Sharif against a perpetually confrontational Khan, European Foundation for South Asian Studies (EFSAS), an Amsterdam-based think tank and policy research institution said.

Nawaz Sharif, whose shadow is likely to loom large over the new government, reportedly has good working relations with Indian Prime Minister Narendra Modi, and Shehbaz Sharif as the Chief Minister of Pakistani Punjab was known to have made efforts to strengthen people-to-people and economic ties with Indian Punjab, always keeping dialogue open, EFSAS said.

During a visit to India in 2013, Shehbaz had told journalists that "war is not an option" and he had backed the resumption of "peaceful dialogue" on all issues, including "Sir Creek, Siachen, water, and Kashmir".

The tone from the Indian side also suggests an inclination toward dialogue and resolution of issues, the analysis said citing the congratulatory messages sent by Prime Minister Narendra Modi to Pakistan PM Shehbaz on his election.

Coming from the very top, Modi's message was a positive affirmation of peace, EFSAS said, adding, that the message, however, also unambiguously underlined India's main concern over terrorism emanating from Pakistan.

Not only has such terrorism had a deadly impact on India's security, especially in Jammu & Kashmir (J&K), where thousands have lost their lives to it, but it has in recent times emerged as the inevitable culprit each time the prospect of dialogue between Pakistan and India has seemed imminent, EFSAS said.

Shehbaz Sharif responded to Modi's call for peace by thanking him for his felicitations and saying that his country desires "peaceful and cooperative" ties with India, while also emphasizing that, peaceful settlement of outstanding bilateral disputes, including J&K, was indispensable.

Saying that Sharif's call for a "Peaceful settlement of outstanding disputes including Jammu and Kashmir" was pertinent, EFSAS said that there cannot be any doubt that resolution of the J&K issue is indeed a key to lasting peace in the region.

Resolution of the J&K issue will, undoubtedly, be in the best interests of all involved, whether that be India and Pakistan, both of which can then move on to what they really wish to do - ensure development and economic prosperity for their massive populations, EFSAS concluded.