* Pakistan said two of its soldiers had been killed and nine more wounded in what it described as small arms fire but dismissed the claims of surgical strikes as an "illusion" designed to whip up "media hype".
* Pakistan on Thursday dismissed as "fabrication of truth" India's claim that it has conducted a military operation across the LoC to target terrorist launching pads, terming it as a "quest" by India to create media hype by rebranding cross-border fire as surgical strike.
"There has been no surgical strike by India, instead there had been cross border fire initiated and conducted by India which is existential phenomenon," Pakistan army said in a statement.
"As per rules of engagement same was strongly and befittingly responded by Pakistani troops.
"The notion of surgical strike linked to alleged terrorists bases is an illusion being deliberately generated by Indian to create false effects. This quest by Indian establishment to create media hype by rebranding cross border fire as surgical strike is fabrication of truth," it said.
Pakistan has made it clear that if there is a surgical strike on Pakistani soil, same will be strongly responded, the statement said.
Pakistan Defence Minister Khawaja Asif said that India's claim was not true.
"India violated LoC last night and only used light weapons in the firing," he said, adding Pakistan forces gave befitting reply to Indian firing.
Pakistan Air Force (PAF) has also rejected India's claim of surgical strikes.
"Pakistan is ready to respond to any such strikes," PAF said in a statement.
Earlier Prime Minister Nawaz Sharif strongly condemned the "unprovoked and naked aggression" by India along the LoC and said Pakistan's armed forces are fully capable of defending the territorial integrity of the country.
Sharif also warned that Pakistan's intent for peaceful neighbourhood should not be mistaken as its weakness.
India carries out 'surgical strikes' on Kashmir frontier
India's military has carried out "surgical strikes" along the de facto border with Pakistan in Kashmir to thwart a series of attacks being planned against major cities, the Indian army said on Thursday.
Pakistan's military however accused India of killing two of its soldiers in "unprovoked firing" along the Line of Control that divides the disputed territory and said its troops had responded.
India said its strikes targeted "terrorists" along the frontier.
"Some terrorist teams had positioned themselves at launch pads along the Line of Control," Lieutenant General Ranbir Singh, the director-general of military operations, said.
"The Indian army conducted surgical strikes last night at these launch pads. Significant casualties have been caused to these terrorists and those who are trying to support them," he told a press conference in New Delhi.
"The operations aimed at neutralising the terrorists have since ceased."
Singh said the decision to launch the strikes had been taken after the military determined the launch pads had been set up with "an aim to carry out infiltration and terrorist strikes in Jammu and Kashmir and various other metros in our country."
He did not say whether the strikes had been carried out by the Indian air force or by ground troops.
The strikes come after the Indian government accused Pakistan-based militants of launching a deadly assault on an army base in Kashmir earlier this month that killed 18 soldiers.
India has also been on a diplomatic drive to isolate its arch rival and fellow nuclear power since the attack on the base on September 18.
On Tuesday it said Prime Minister Narendra Modi would not attend the South Asian Association for Regional Cooperation (SAARC) summit in Islamabad in November, in a major snub to its neighbour.
Pakistan says Indian claim of surgical strike in Kashmir an "illusion"
Pakistan said India's claim of a "surgical strike" across the countries' de facto border in the disputed region of Kashmir was an illusion, saying that the incident was "cross-border fire".
"The notion of surgical strike linked to alleged terrorists' bases is an illusion being deliberately generated by India to create false effects," the military said in a statement.
It was released shortly after a senior Indian military officer said India had hit suspected militants preparing to infiltrate into Indian-administered Kashmir along the Pakistani side of the border.
Pakistan's military confirmed that two of its soldiers had been killed in the exchange of fire across the Line of Control, which serves as the de facto border.
Sharif condemns Indian aggression along LoC
Strongly condemning "unprovoked and naked aggression" by India along the LoC, Prime Minister Nawaz Sharif said Pakistan's armed forces are fully capable of defending the territorial integrity of the country.
Sharif also warned that Pakistan's intent for peaceful neighbourhood should not be mistaken as its weakness, Radio Pakistan reported.
He said Pakistan can thwart any "evil design" to undermine its sovereignty.
He strongly condemned the "unprovoked and naked aggression of Indian forces along the Line of Control".
Sharif also paid rich tributes to soldiers who have been killed in the firing.