Speaking to the annual United Nations General Assembly, Mr Sharif said Pakistan could not ignore India's "unprecedented" arms build-up and would "take whatever measures are necessary to maintain credible deterrence."
On Wednesday, India summoned Pakistan's High Commissioner Abdul Basit and handed over proof of Pakistan's role in the deadly terror attack on an army base in Jammu and Kashmir's Uri in which 18 soldiers were killed. India said that it has the right to respond when and where it chose.
Pakistan, on the other hand, has accused India of apportioning blame before the incident had been properly investigated.
Mr Sharif said that Pakistan wanted peace with India and claimed that his country had repeatedly offered dialogue.
India has made it clear that terrorism must be eliminated and hence would only discuss terrorism-related issues since Pakistan is the epicenter of global terror; whereas Pakistan wants an agenda that would, among other things, discuss Kashmir.
Mr Sharif spent most of his time talking on Kashmir and India. "Talks are no favour to Pakistan," he said, before going on to warn that "the international community ignores the dangers of rising tensions in South Asia at its own peril."
Pakistan has actively played a role in the 27-year long insurgency in Jammu and Kashmir.