Pakistan's ambassador to Britain accused Cameron of "damaging the prospects of regional peace" with his remarks on Wednesday in the southern Indian IT hub of Bangalore.
Asked about regional security issues, the prime minister responded with a warning to India's arch-rival against becoming a haven for militant groups.
"We cannot tolerate in any sense the idea that this country (Pakistan) is allowed to look both ways and is able, in any way, to promote the export of terror, whether to India or whether to Afghanistan or anywhere else in the world," he said.
The comments were gleefully splashed on the front page of every major newspaper in India, which has long accused Pakistan of harbouring and abetting groups such as Lashkar-e-Taiba.
"We should be very, very clear with Pakistan that we want to see a strong, stable and democratic Pakistan," Cameron said.
"It should be a relationship based on a very clear message: that it is not right to have any relationship with groups that are promoting terror."
Back in London, Pakistani High Commissioner Wajid Shamsul Hasan voiced his government's deep disappointment, saying Cameron had chosen to ignore Pakistan's "enormous role" in the war on terror.
"He seems to be more reliant on information based on intelligence leaks, despite it lacking credibility or corroborating proof," said Hasan, writing to The Guardian newspaper.
"A bilateral visit aimed at attracting business could have been conducted without damaging the prospects of regional peace," he added.
There was no immediate comment Thursday from the government in Islamabad.
The issue of South Asian regional security, including Pakistan and Afghanistan, is sure to be raised again when Cameron holds talks Thursday with Indian Prime Minister Manmohan Singh and Foreign Minister S.M. Krishna.
But Cameron will be keen to keep his two-day visit focused on its main purpose: Britain's drive to take bilateral trade and economic ties with the former jewel in its colonial crown to a new level.
Cameron is heading the largest British delegation to travel to India in recent memory, including a host of senior cabinet ministers and corporate bigwigs.
Pakistan foreign office responds
In response to the Cameron's statements, Pakistan's Foreign Office Spokesman Abdul Basit said that Pakistan expresses sadness over the British prime minister's allegation against Pakistan of exporting terrorism.
While addressing a press conference at the foreign office, he said Pakistan's ambassordor to Afghanistan has been asked to seek clarification over the statement of Hamid Karzai on the same subject.
Abdul Basit observed that the British prime minister's statement is based on the reports of Wiki Leaks which are self serving and baseless.
He added that the world acknowledges the sacrifices made by Pakistan which is rendering these sacrifices for its own well being.
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