A spokesman for President Asif Ai Zardari rejected Panetta's claim of Osama Bin Laden still in Pakistan and challenged the CIA to hand over any evidence it has to back it up.
"There is no truth in this CIA statement. These are all rumours," presidential spokesman Farhatullah Babar told The Associated Press.
"Such statements keep coming, but if they know he is in Pakistan, then they should also know his exact location, and if they do, the why don't they share it with Pakistan?" Babar said, referring to bin Laden.
The CIA believes Osama bin Laden is still in Pakistan, and the spy agency is hoping to close in on him as that country's military cracks down on the northwestern tribal area where he is thought to be hiding.
CIA Director Leon Panetta told reporters after a speech in Congress on Thursday that finding bin Laden remains one of the CIA's top priorities.
However Babar rejected CIA claim and marked it rumours.