"We take a consistent review of our ties with Pakistan. We have made clear that the incident can cast a negative impact on our bilateral ties. We will take steps with due care and consideration," he said addressing a meeting of AICC here.
"We want friendship with Pakistan but they should also make efforts in this regard. It is not possible only because we want it or because of our efforts," the Prime Minister said.
His remarks were greeted by applause from the gathering of delegates at AICC which was presided by party chief Sonia Gandhi with Vice President Rahul Gandhi on her side.
Last week the Prime Minister had also said that it will not be "business as usual" with Pakistan in the wake of the LoC incident.
Lance Naik Hemraj was beheaded by Pakistani soldiers in a cross-Line of Control (LoC) attack in Mendhar sector of Jammu and Kashmir on January 8.