He said that any aggression against Pakistan will get a "befitting response."
Addressing a passing-out parade at the Military Academy in Kakul, Gen Sharif said that the people of Kashmir should be allowed to decide their fate in the light of UN resolutions.
He said Pakistan desires regional stability and relationship based on equality and mutual respect.
Gen Sharif said the resolution of Kashmir issue was imperative for establishment of sustainable peace in the region.
"We persistently seek peace in the region and beyond. This quest for peace is our nation's greatest strength. We desire regional stability and relationship based on equality and mutual respect," he said.
The army chief said Pakistan's armed forces were fully capable of meeting any external threat.