Pakistan says it is fully prepared to defend itself should India engage in a military action against the country over the Mumbai attacks.

Pakistani Foreign Minister Shah Mehmood Qureshi said Tuesday that while Islamabad seeks peace with its neighbor, it is "fully prepared in case it (war) is imposed on us."

"We are not oblivious to our responsibilities to defend our homeland. But it is our desire that there should be no war," Qureshi said.

The warning comes as tension between New Delhi and Islamabad has been high over Indian claims that Pakistan was behind the three-day assault on India's financial and cultural capital, where 172 people were killed and more than 300 wounded.

Similar finger-pointing after an attack on the Indian Parliament had brought South Asia's two nuclear-armed governments to the brink of war in 2001.

Qureishi's remarks come after India's ruling Congress party spokeswoman Jayanti Natarajan warned of "stern action" against Pakistan, in response to alleged involvement of Pakistani militants in Mumbai terror attacks.

Indian Foreign Minister Pranab Mukherjee, however, later ruled out a military action against Pakistan and asked for "the arrest and handover of those settled in Pakistan and fugitives of Indian law."

The Pakistani foreign minister on Tuesday said India's demands for the extradition of suspects in the Mumbai attacks were out of the question, adding that the 16 arrested suspects would be kept on Pakistani soil.

"The arrests are being made for our own investigations. Even if allegations are proved against any suspect, they will not be handed over to India," Qureshi said. "We will proceed against those arrested under Pakistani laws."

CS/DT