Pakistan's defence minister Khawaja Asif said that a row over a mass shooting in Kashmir could lead to an "all-out war" between his country and India.
Axar.az reports, citing Sky News, Khawaja Asif said the world should be "worried" about the prospect of a full-scale conflict involving the two nations, which both have nuclear weapons.
But he also said he hoped the dispute could be resolved via negotiations.
It comes after 26 tourists were shot dead by gunmen at a beauty spot in Indian-controlled Kashmir on Tuesday – an attack that the government in New Delhi has blamed on Pakistan.
But Mr Asif denied the claim, suggesting India had "staged" the shooting in a "false flag" operation. He warned his military was "prepared for any eventuality" amid escalating tensions and diplomatic measures from both sides.
He said: "We will measure our response to whatever is initiated by India. It would be a measured response.
"If there is an all-out attack or something like that, then obviously there will be an all-out war."
When asked if the world should be worried, he replied: "Yes, I think so. The clash between two nuclear powers is always worrisome...
"If things get wrong, there could be a tragic outcome of this confrontation."