The statement was denied by Sharif's office.
The three officers of Information Department have been suspended for their "poor performance", the Express Tribune newspaper reported.
Press Information Department Director Chaudhry Abdur Rashid, Press Information Officer Parvez Ahmed and Assistant Director Khawaja Imran were suspended for issuing "irrelevant material" to the media that "embarrassed" premier Sharif and his government, the paper said.
PID Secretary Shehla Waqar had also sent a summary to the information ministry to hold an inquiry into the matter.
The ministry had released a press statement reportedly misquoting Sharif, stating that "Kashmir is a flash-point and that unless the issue is resolved, there is a possibility of a fourth war between Pakistan and India".
This prompted Prime Minister Manmohan Singh to issue a strongly-worded statement reminding Sharif of the consequences of war.
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