"Being peaceful does not mean to withdraw from the right of independence. We have to defend our political, economic and cultural sovereignty," Sharif said while addressing the ceremony to rename Mianwali Airbase as M M Alam Airbase after the legendary fighter pilot of 1965 war.
Sharif emphasised that Pakistan does not harbour aggressive designs against any other country.
"Our government is clear on this issue. A strong Pakistan with strong armed forces guarantees regional peace," he said.
The Prime Minister said every necessary step would be taken to strengthen the country's armed forces including its Air Force and Navy.
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He mentioned a Quranic verse which signifies making ready the horses against enemies and said its connotation in today's world is to equip the armed forces with best weaponry and advanced professional training of troops.
He said the countries of South Asia must consider the plight of their more than one billion population, most of which were living below poverty line.
Meanwhile, Sharif also said Pakistan was not sending its military troops to other countries.
He said the recent visits of the leadership of brotherly countries including Saudi Arabia, Bahrain and Kuwait was testimony of their friendship and must not be linked with such assumptions.
Prime Minister Sharif said the visits of the leaders of Arab countries was in the Pakistan's interest and more such visits would take place in future as well.