Presided over by Prime Minister Shahid Khaqan Abbasi, the meeting was attended by top Cabinet ministers, Chairman Joint Chiefs of Staff Committee Gen Zubair Hayat, the three services chiefs, the director generals of Inter-Services Intelligence and Military Intelligence.
He said misunderstandings are removed in the light of the facts.
The participants of the meeting also "unanimously rejected the allegations and condemned the fallacious assertions". However, a close reading of his remarks shows that they constituted a full-frontal attack on the Pakistan army.
In the interview, Sharif said "Militant organizations are active".
In an interview with Dawn published on Saturday, Sharif had criticised Pakistan for letting militant groups cross the border and commit terror attacks like the one in Mumbai in 2008. "Explain it to me", he had said, in a clear reference to the Mumbai killings blamed on 10 Pakistani terrorists.
"The statement of Nawaz Sharif has been grossly misinterpreted by the Indian media", a statement from an unnamed PML-N spokesperson said on Sunday.
Pakistan continues to await cooperation from India regarding the arrest of alleged Indian spy Kulbhushan Jadhav and the Samjhauta Express attack, the statement said.
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The spokesman said the PML-N as the country's premier popular national political party and its supreme leader (Nawaz Sharif) need no certificate from anybody on their commitment and capacity to preserve, protect and promote Pakistan's national security.
The Pakistan Tehreek-e-Insaf (PTI) has demanded to place Nawaz Sharif's name on the Exit Control List (ECL) and also demanded him to be proceeded against under article 6 of the Constitution for his anti-state remarks. He asked National Accountability Bureau (NAB) to probe the details of businesses of Sharif family in India and put the facts before the nation.
PTI legislator Khurram Sher Zaman on Monday submitted a resolution in the Sindh Assembly seeking a "ban on the broadcast of Nawaz Sharif's statements and speeches" as these had "given comfort and propaganda points to all enemies of Pakistan".
Political analysts believe that these latest developments indicate further aggravation in the already tense civil-military relationship at a time when elections are just a couple of months away.
India's foreign ministry is yet to respond but defence minister Nirmala Sitharaman described Sharif's comments as a "serious disclosure".
"Nawaz's statement is tantamount to treason".
"If you suggest the [government] "allowed" any action against another country then [you are] suggesting official complicity", said PPP Senator Sherry Rehman. "Punjab Chief Minister Shehbaz Sharif and I stand behind our Quaid".