During the meeting, Gen Sharif discussed "matters relating to the implementation of National Action Plan (NAP) for combating terrorism and extremism" with the Prime Minister, an official statement said.
Following the Taliban assault on an army-run school in Peshawar that killed nearly 150 people, mostly children, Pakistan evolved the action plan to eliminate militancy from the country.
Officials privy to the meeting said he also briefed Prime Minister Sharif about his recent visit to Beijing where he met top Chinese political and military leadership.
Unconfirmed reports said that the Pakistan government has invited China's President Xi Jinping to be the chief guest at the military parade to be held after a gap of seven years.
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The parade by the three branches of the armed forces had been the hallmark of the Pakistan Day celebrations; it features military hardware and cultural activities.
The last military parade was organised on March 23, 2008 during the regime of Gen Pervez Musharraf.
During the meeting, Gen Sharif also briefed the Prime Minister about operation Zarb-i-Azb in North Waziristan and Khyber-1 in tribal regions of Khyber Pakhtunkhwa, against militants.
Pakistan has ended a six-year moratorium on executions in terror-related cases and pledged to crack down on all militant groups.