"Appropriate action will be taken in line with the Treaty in case of any violation by India," Foreign Office (FO) spokesperson Nafees Zakaria said at the weekly briefing.
Pakistan was keeping a close eye on the situation, Radio Pakistan quoted him as saying.
Zakaria's remarks come amid reports that India may review the 56-year-old Indus Water Treaty.
He said that India is making "desperate attempts" to divert attention from the "atrocities and human right violations" being committed in Kashmir.
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Responding to a question, he claimed that India violated ceasefire on the Line of Control for more than 90 times this year.
The notion of isolating Pakistan is "ridiculous", Zakaria said, adding that India's "negative attitude" has been exposed which is the biggest hurdle in the way of regional development and prosperity.
He also termed the Indian treatment to the Pakistani artistes as "very disappointing and highly regrettable" as he deplored India's decision to "use SAARC for its political ambition", according to the report.
Zakaria noted that though Pakistan does not comment on media reports usually, in this case it welcomed the mediation offer.
"We continue to urge our American friends including those in the administration to play their due role in resolving bilateral issues between Pakistan and India, particularly the Kashmir dispute," he said.
"And definitely Pakistan has welcomed in the past also any role of mediation, we welcome such offers," he added.