"We must work towards an equilibrium and there should not be an atmosphere of arms race or competition which can be avoided," foreign office spokesman Masood Khan told a regular news briefing.

Asked to comment on India's announcement that its military budget would rise 7.8 percent to 830 billion rupees (19 billion dollars) in the coming year, he said the "spike in defence spending is not a helpful trend."

"What we need is nuclear restraint in the region, we need conventional balance, we need restraint all around," Khan added.

Pakistan and India have fought three wars in the past half-century and came close to a fourth in 2002. They are currently engaged in a 13-month-old peace dialogue to improve relations.

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