The Pakistani defence minister Khawaja Asif claimed that the country is prepared for a short or long conflict and can inflict heavy losses on India in case "war hysteria" overcomes the Indian leadership.
His remarks were in reaction to Indian Army chief Gen Dalbir Singh's remarks that India is prepared for "swift and short" wars in the future.
Participating in a Radio Pakistan programme, Asif said Pakistan believes in peace but knows how to respond to any aggression.
"We want peace but will inflict heavy losses on India if war hysteria overcomes its leadership," he said.
"Pakistan is fully prepared to give a befitting response if India imposed short or prolonged war," he added.
Talking about previous wars, he said Pakistani armed forces had "foiled designs" of Indian troops in 1965. "Our forces crushed the Indian dreams of occupying Lahore back in 1965 and will do the same in future," he said.
The defence minister also said Pakistan Army was now more experienced and professional than 50 years ago. "Our forces are engaged in the war against terror for several years and they know how to respond to any challenge," he said.
Asif, however, said Prime Minister Nawaz Sharif believes in peace.
The remarks come against the backdrop of heightened tensions and cross-border firing between Indian and Pakistani troops along the LoC recently.