He gave the statement while addressing students at the VJTI's annual festival, Technovanza.
Dhanoa, who was the air chief between December 31, 2016, and September 30, 2019, said that after the attack on Parliament in December 2001, the force had proposed action against Pakistan through air strikes but it was not accepted.
He also stressed that if peace were to come, Pakistan would lose several of its privileges. The former IAF chief emphasised that Islamabad would keep the Kashmir pot boiling without allowing it to boil over.
"Pakistan indulges in propaganda battles and will continue to attack," said Dhanoa, adding that the Indian Air Force has the ability to fight short, swift wars.
But he pointed out that the major challenge faced by India is the fact that it has two nuclear-armed nations in its neighbourhood.
On Balakot air strike, the former IAF chief stated that the air strike had created a shock effect in Pakistan and the Pakistan Air Force was caught unaware. He had pointed out that there is a lack of joint planning among its defence forces and their morale is low.
He also stated that India had nuclear capability on land, and in the sea and in the air and China has developed a modern air force which relies on quality, not quantity.
He said that China has significantly increased the deployment of aircraft and air crew in the Tibet Autonomous Region. China is also busy on the eastern front and the South China Sea and they also have created unsinkable aircraft carriers.
( With inputs from IANS )