The minister affirmed the time for a "final freedom struggle has come", and the war with India will be the "last, this time".
Rashid Ahmed claimed Pakistan possess 125-250-gram nuclear bombs, which can hit and destroy things as per his country's wishes. He also warned Indian Prime Minister Narendra Modi to avoid a war lest it proves to be the "last" between the two nuclear-armed nations.
"Dialogue is possible if India takes a step towards resolving the Kashmir issue as per the United Nations resolutions. If war is imposed on Pakistan, India would be divided into 22 parts," the Pakistan minister added.
Ahmed has been known for making controversial remarks in the past. Last week, he predicted a full-blown war with India could occur around November amid reports of troop deployments near the Indian border.
The Army Chiefs of the two nuclear-armed nations have visited troops of their forward posts in last three days and vowed to reply appropriately in the case of any provocations by the enemy.
Last Tuesday, Pakistan moved hundreds of its troops and elite commandoes close to the Line of Control (LoC), a 450-mile long military line that serves as a de-facto border separating the disputed region of Kashmir between the two nuclear-armed neighbours.
Sources said the deployment indicates India's western rival is preparing for a "short term conflict".
Tensions between the nuclear-armed neighbours India and Pakistan have intensified since New Delhi amended Article 370 which had granted Jammu and Kashmir special status. Kashmir has been a bone of contention between the two countries since they gained freedom from British colonial rule in 1947. Both govern it in parts but claim it in full.