The remark was made by Foreign Secretary Aizaz Chaudhry in an interview with DawnNews.
Responding to PM Modi's address in Kerala on Saturday, where he denounced Pakistan for supporting and exporting terror, besides warning that the neighbouring country will be isolated as a "terror state", Mr Chaudhry said that several UN resolutions recognised Islamabad as a party to the Kashmir dispute and India too recognised that status.
But India has no justification for interfering in Pakistan's internal affairs, he added.
The Foreign Secretary said it was unfortunate that the Indian leadership "continues to indulge in a vilification campaign against Pakistan by making provocative statements and hurling baseless accusations".
He said that such display of irresponsible behaviour at the highest political level was regrettable.
"It is evident that, as an act of desperation, India is trying to distract world attention from the atrocities perpetrated by its occupation forces against innocent and defenceless Kashmiris, including women and children," Mr Chaudhry said.
The Foreign Secretary said that while casting aspersions on Pakistan, India continued to "sponsor terrorism in Pakistan directly through its state apparatus".
The arrest and confessional statement of Kulbhushan Yadav -- the Indian national arrested in Pakistan on charges of being a RAW agent -- had proved India's involvement, he added.
"There are increasing demands for independent investigations and fact-finding missions to be sent to Kashmir," Mr Chaudhry added.
Ambassador Jilani said that by making such statements, Indian leaders were trying to hide the atrocities their forces were committing against the people of Kashmir. "We reject the statement. This is highly irresponsible. The content of the statement is a distortion and counter-intuitive," he said.
Meanwhile, Jalil Abbas Jilani, Pakistan's Ambassador to Washington, believed that Modi's statement shows India's nervousness with the situation in held Kashmir.
Mr Jilani said that to hide their guilt and nervousness, Indian leaders had forgotten the language of diplomacy, Dawn News reported on Monday.
"With such statements, they cannot draw a curtain on their brazen acts of terrorism and crimes against humanity in Kashmir," he said.
The situation in Kashmir demanded a responsible and realistic response, but "unfortunately, India is acting in a highly irresponsible manner", Mr Jilani said.
"India is making a wrong example and it will hurt everybody," he said, adding "If India continues on this path, it will end up isolating itself instead of Pakistan."
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