Earlier, in a statement, Pakistan's Foreign Ministry said that Pakistan Air Force undertook strikes across Line of Control from within Pakistani airspace.
"We also wanted to show our capability", Premier Imran said of Wednesday's air strikes by Pakistan Air Force (PAF).
Pakistan said its military shot down two Indian aircrafts that violated its airspace in the disputed Kashmir border region, capturing an Indian pilot a day after India conducted an air strike in Pakistan.
While addressing a press conference, a spokesperson for the Indian MEA said, "We have lost one MiG 21 and its pilot".
Two militants allegedly belonging to JeM were shot dead in Indian-controlled Kashmir Shopain district on Wednesday morning, in the fourth counter-insurgency operation since a auto laden with explosives was detonated by an Indian paramilitary convoy, sparking the latest round of tensions between the nuclear-armed neighbours.
The Pakistani military exposed India's fictitious claim and invited "anyone and everyone - including foreign diplomats, military attaches and United Nations military observers" - to visit the area where the Indian aircraft dropped bombs and see if any training camp existed there.
She said the limited objective of India's pre-emptive strike inside Pakistan on a terrorist training camp Tuesday was to act decisively against the terrorist infrastructure of Jaish-e-Mohammad group, to pre-empt another terror attack in India.
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Modi's remarks came as news broke about Wing Commander Varthaman Abhinandan's release on Friday by Pakistan. A Congress spokesperson said, "Right now, we are faced with a crisis".
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Pakistani airports will be used for "military purposes", an official told Dawn News TV, adding that a red alert has also been issued. Pakistan denied that any of its planes have been downed. Pakistan had said that Indian warplanes dropped bombs near the Pakistani town of Balakot but there were no casualties.
"I also encouraged both ministers to prioritize direct communication and avoid further military activity", said the US top diplomat.
Pakistan Foreign Minister Shah Mehmood Qureshi on Wednesday threatened to boycott a meeting of the Organisation of Islamic Cooperation (OIC) scheduled for next month in the UAE if India's External Affairs Minister Sushma Swaraj participates in it.
During the talk, he spoke on the repercussions of a nuclear war between Pakistan and India.
Air Canada said it has temporarily suspended service to India because of Pakistan's airspace closure.
The Pakistani civil and military officials have rejected the claim.
Pakistan has said it was not involved in the attack and was ready to help New Delhi in the investigations.