Masood Azhar is the leader of Jaish-e-Mohammed (JeM), which carried out a suicide bombing in February killing 40 troops in Indian-administered Kashmir.
The UN move comes after China dropped its objection to the listing. India hailed it as a diplomatic victory. Masood Azhar will be subject to an assets freeze and a travel ban.
Pakistan said it would immediately enforce the sanctions, but also took aim at India. “Pakistan maintains that terrorism is a menace to the world, including the Indian state-sponsored terrorism against innocent Kashmiris,” foreign office spokesman Mohammad Faisal said. He added that it would be false to present the development as a “victory for India and validation of its stance”.