"This is a common challenge which requires greater focus by this council, one where closer international cooperation needs to be, can be and should be expanded for our common interest," Mr Akbaruddin told the UN Security Council during an open debate on Wednesday.
"It appears that this common threat to states and societies is not clearly understood here. Even on counter-terrorism, cooperation continues to elude the council," he said.
China has repeatedly blocked a move by India to designate Masood Azhar, chief of Pakistan-based Jaish-e-Mohammed (JeM) terrorist group, as a global terrorist.
On an issue as serious as designation of terrorist individuals and entities, the council-mandated Sanctions Committees fail to make concrete progress and fall victim to "narrow political and strategic concerns in some cases", he said.
Mr Akbaruddin also referred to the fact that the UN-designated terrorist and Mumbai attack mastermind, Hafiz Saeed, was seeking to contest elections in Pakistan.
Saeed had announced that his Jamaat-ud-Dawa (JuD) will contest the 2018 general elections in Pakistan under the banner of the Milli Muslim League, which is yet to be registered with the election body of Pakistan.
"In other cases where the Sanctions Committees has designated terrorists, there are states who venture to mainstream UN designated terrorist individuals into their political process in total disregard of international law, thus putting our common security in peril," Mr Akbaruddin said in his address to the UN Security Council.