"The armed forces are now located outside the city of Benghazi and we have no intention of entering Benghazi," Kaaim said at a news conference in the Libyan capital.
"The ceasefire we decided on ... for us means no military operation big or small," he said, denying rebel charges that Libyan leader Moamer Kadhafi's regime was violating the ceasefire which it announced earlier the same day.
Kaaim also renewed an invitation by Libya to Turkey, Malta and China to send observers to monitor the ceasefire which his government declared.
"We hope that those who were invited to monitor the ceasefire will quickly send observers," he said, adding that once in Libya they will be able to "go anywhere they want" and "will work with the armed forces."
"We chose countries with moderate positions on Libya," he said when asked why the invitations were sent to only those three nations.
A Libyan official earlier said his country was "in contact with Turkey, Malta and China and we asked them to send observers to oversee the ceasefire.
Turkey's NTV later reported that Ankara is evaluating the request.
Kaaim also called on UN Secretary General Ban Ki-moon to send a "fact-finding mission as soon as possible" to Libya, to investigate what he said were "crimes against humanity being committed by the rebels."
And he slammed what he called a "media and psychological war targeting the morale of the Libyan nation."
Kaaim dismissed claims of "air bombardment and shelling of Libyan cities."
"In fact life is very normal and we hope it will continue as such," he said.
Libyan rebels have dismissed the ceasefire announced by the Libyan government as a bluff.