"Pakistan does not want to join the arms race in the region, however, will continue to ensure balance in the region," Sharif said in a message issued on 'Defence Day' marked every year to commemorate the 1965 war with India.
"We have attained self-reliance in production of advanced weapons and our nuclear capability is the hallmark of our strong defence," he said.
Harping on the Kashmir issue, Sharif said it should be resolved according to UN resolutions.
President, in a separate message, said Pakistan's armed forces are fully prepared to defend the homeland.
"The 6th September is a milestone in our history when 51 years ago Pakistan Army and the entire nation courageously defended the homeland against the enemy aggression," the President said.
Different ceremonies were held in the country to mark the Defence Day.
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