Pakistan's intelligence sources said the country has "all options on the table" in the aftermath of Iran's "unprovoked" airstrike on alleged terrorist targets in southwestern Baluchistan province.
Islamabad said late Tuesday that Iran violated its airspace and carried out an airstrike, killing two children and injuring three others.
In response, it recalled its ambassador from Iran, and suspended all high-level diplomatic exchanges with Tehran. The Iranian envoy to Pakistan, who is currently visiting Iran, has also been asked not to return.
The sources said a "very important and urgent" meeting regarding Iranian airstrikes was being held to discuss Pakistan's response.
Iranian state media had claimed that its Revolutionary Guards carried out strikes on Jaish al-Adl militant group in the border town of Panjgur in Balochistan. The news reports, however, were later removed.
The sources said Pakistan was "aware of the regional situation and evaluated that Iran intends to remain on the agenda at a time when it is unable to make a significant contribution in ending the crisis" in Gaza, where Israel has killed more than 24,000 people.
"Pakistan reserves the right to respond at the time, place, and manner of its own choosing," the insiders said.
Calling the Iranian action as "not consistent with close relations" between the two neighboring nations, the officials called it "a deliberate, unprovoked, and gross violation of Pakistan's sovereignty."
"This will not go unnoticed or responded."
Meanwhile, Iran's foreign minister has defended his country's missile and drone attacks on extremists in Pakistan, saying they were needed for Iranian national security.
"We respect Pakistan's sovereignty and territorial integrity," said Iran's Foreign Minister Hossein Amirabdollahian at the World Economic Forum in Davos on Wednesday, a day after the strikes.
"But we will not allow them to play with the national security of our country."
He said Iran was not aiming at civilians.
"No citizens of our neighbors, friends and brothers in Pakistan were targeted by drones and missiles," the minister continued. Instead, the attack was only aimed at "terrorists" seeking refuge in the border area.
The Pakistani Foreign Ministry described the attack as illegal and spoke of a "blatant violation of Pakistan's sovereignty."
