The war of words came as cross-border artillery fire intensified overnight, killing civilians and forcing thousands of villagers on the border to flee.
Indian security forces said a member of the Pakistan-backed militant group Jaish-e-Mohammad, which India accuses of carrying out an attack on the Indian parliament last December, was killed in Kashmir.
The two South Asian nations have massed a million troops along the 1,800-mile border since the December attack on the Indian parliament in New Delhi, in which 13 people were killed.
Chinese President Jiang Zemin is also lending his weight to push for a resolution of the current crisis between China's two eastern neighbors.
Pakistani officials believe Russia, a key Indian ally and one of India's major arms supplier, is in a good position to persuade New Delhi to begin talks. China, which has fought a war with neighboring India, has been traditionally closer to Islamabad.
Toning Down Talk in New Delhi
In recent days, international diplomatic hopes were pinned on the summit meeting at Almaty, which analysts regarded as the best possible chance of starting a peace process.
But even as the leaders of the two countries adopted discouragingly belligerent tones at the summit, the Indian press was noticeably optimistic today as reports talked about New Delhi's softening stance on the Kashmir issue.
On Monday, India's Defense Ministry sought to allay fears that nuclear weapons would be employed by either country.
"The government makes it clear that India does not believe in the use of nuclear weapons. Neither does it visualize that it will be used by any other country," the ministry said in a statement. "India categorically rules out the use of nuclear weapons."
The current escalation of tensions began with the May 14 attack on an Indian army camp, in which 30 people, including the wives and children of Indian soldiers, were killed. India blames Pakistan-backed militants for the attacks, but Pakistan denies the charge.
Last month, Pakistan tested ballistic missiles capable of carrying nuclear warheads deep into India, further escalating tensions between the two populous South Asian nations. ABCNEWS' Jim Sciutto in Islamabad, Pakistan, contributed to this report.