Asif's admission came two days after the BRICS grouping that includes China, for the first time named terror groups like Lashkar-e-Taiba (LeT) and the Jaish-e-Mohammad (JeM) among the internationally banned outfits operating from within Pakistan.
US President Donald Trump had also criticised Pakistan for being a "safe haven" for terror groups like the Haqqani network.
Asif acknowledged the existence of LeT and JeM among the internationally banned outfits operating from within Pakistan.
"We need to tell our friends that we have improved our house. We need to bring our house in order to prevent facing embarrassment on the international level," Asif said while speaking to Geo News yesterday, days ahead of his visit to Beijing to meet the Chinese leadership.
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The inclusion of LeT and JeM in the BRICS Declaration at Xiamen is considered a setback to Pakistan, China's "all weather" friend as Beijing had succeeded in blocking efforts to name these Pakistan-based terror outfits in the outcome document at the five-member grouping's summit in Goa last year.
But Asif said that "friends should not be tested [every time], particularly in the changed scenario".
"Instead, we should impose some restrictions on the activities of elements like LeT and JeM, so that we can show the global community that we have put our house in order," he said.
Clarifying the position of the government, he said that for the first time, the Foreign Ministry published an advertisement, requesting people to avoid donating hides of sacrificial animals to proscribed organisations, including the the LeT and JeM.
"Despite all these efforts, in some isolated instances, the organisations were allowed [to collect hides] at some places," he acknowledged.
"I am not making a political statement but telling you a fact: we will continue to face such embarrassment till the time we keep our eyes off these [militant] organisations in our country," he was quoted as saying.
"We need to make a clean break from our past; in 1979, we made a wrong decision and acted like a proxy for the entire next decade. After 9/11, we again made a wrong decision and adopted a war which was never ours. We have bore uncountable losses of lives and properties in this war," he said.
The minister rejected the narrative that the Pakistani soil is being used for terrorism, adding that "we will have to convince the world that Pakistan has nothing to do with the terrorism.