Sharif's remarks on Kashmir came ahead of a meeting with US President Barack Obama on Wednesday.
Without naming the Simla Agreement, the Foreign Office said India, as a member of the UN, should not overlook or undermine numerous Security Council resolutions on the Kashmir issue.
"While bilateral agreements may exist, the sanctity of the UN resolutions cannot be understated," it added.
The Kashmir dispute is a fundamental component of the bilateral dialogue process and resolving this dispute is vital for peace and security in the region, the Foreign Office said.
"India's continued intransigence over this issue is counterproductive and is unhelpful in the efforts to resolve this dispute," it said.
Pakistan remains committed to a purposeful, constructive and result-oriented dialogue with India and believes serious efforts are needed to maintain a positive atmosphere and "avoid negative propaganda", the statement added.
