Islamabad, Oct 1 (IANS): Pakistan Prime Minister Nawaz Sharif has said Pakistan is not a sponsor of terrorist activities but is actually a victim of foreign-funded terrorism. He also denied calling the Indian prime minister a "village woman".

"When the Taliban disown the attacks, the mind is naturally compelled to think that there are external forces at work to destabilise Pakistan. We need to find out who these hidden hands are and who is behind them," the News International Tuesday quoted Sharif as saying in London while on his way back home after addressing the UN General Assembly in New York.

The Pakistan prime minister said he had raised the issue of a suspected Indian involvement in Pakistan's Balochistan province with his Indian counterpart Manmohan Singh.

Sharif also denied calling Manmohan Singh a "village woman", the News report said. The purported comment raised a controversy in India with the Bharatiya Janata Party's prime ministerial aspirant Narendra Modi raising the issue at a rally in New Delhi Sunday.

While expressing his satisfaction with the outcome of his meeting with Manmohan Singh on the sidelines of the UN General Assembly Sunday, Sharif said: "We need to be sagacious and realistic about peace in the South Asian region. Some of the most hotly contested issues in the world were settled through talks.

"If we don't sit down and talk through things, then we can't resolve our issues. There is poverty and backwardness in India and Pakistan... both countries face so many issues. It's in the interest of India and Pakistan to maintain peace and negotiate with each other for peace," the newspaper quoted him as saying.