Prime Minister Shehbaz Sharif has lauded Pakistan’s air force following a claim by military sources that it shot down five Indian fighter jets.

Sharif’s comments come amid fears of all-out war in the region, following an Indian attack on Punjab and Pakistan-administered Kashmir early Wednesday which killed at least 26 people, including a three-year-old girl. Pakistan’s defence minister, meanwhile, warned that India’s latest assault marked an “invitation to expand the conflict” between the two neighbours — but cautioned that Islamabad is “trying to avoid” a full-fledged war.

Sharif praised the Pakistani military’s readiness “to deal with the enemy’s planes,” as he addressed the country’s parliament in capital Islamabad for the first time since India’s attack early on Wednesday local time.

Know the news with the 7NEWS app: Download today

He did not elaborate on how Pakistan might respond to India’s attack, after he earlier described it as an “act of war.” His office said the country’s military had been “authorised to undertake corresponding actions in this regard,” according to an earlier statement.

“A few days ago, India was proudly showing off its purchase of Rafale jets. But one shouldn’t be too proud,” Sharif told lawmakers. “These jets flew from there in combat form, but our air force was also prepared.

“We are a nuclear power and a conventional warfare power. There is no higher respect and honour than this.”

Lawmakers filled the country’s parliament building with calls of “Pakistan Zindabad,” which translates to “Long Live Pakistan.”

Earlier on Wednesday, Pakistani military sources said they brought down five Indian fighter jets and one drone in an act of “self-defence” — including three Rafale aircraft, which are highly sophisticated multi-role jets manufactured in France. CNN cannot independently verify the claim and has reached out to the Indian government for a response.

Asif, meanwhile, told CNN’s Becky Anderson on Connect the World India’s attack was ‘a clear-cut violation’.

“(India) crossed an international boundary,” he said. “This is a clear-cut violation, and an invitation to expand the conflict and maybe convert it into something much more wider and much more dangerous for the region.”

He insisted that Pakistan’s military was braced “for an all-out war,” after India raised the “stakes” this week — following decades of tensions in one of the most militarised places in the world.

“What happens next is we are prepared for an all-out war. There is absolutely no doubt, because India is increasing the intensity, the stakes of this conflict,” added Asif. “So… we can’t be caught with our guards down.”