India and Pakistan stepped back yesterday from their worst confrontation in three decades, with Islamabad saying it had agreed a truce with New Delhi to allow anti-Indian militants to withdraw from northern Kashmir.
India said there was "some evidence" of withdrawal by Pakistani forces from the Indian side of the military Line of Control in Kashmir, but denied New Delhi had agreed to a ceasefire in an agreement with Islamabad.
A spokesman for the Indian Prime Minister, Mr Atal Behari Vajpayee's office said the Indian army did not agree to a word like "ceasefire" in the military agreement. The dramatic developments took place after Indian and Pakistani military commanders met in an Indian border town in the northern state of Punjab.
India's National Security Adviser, Mr Brajesh Mishra, said there was evidence Pakistani forces were withdrawing from the Kaksar sector and the Mushkoh valley in northern Kashmir.
"It is our hope that in seven days the status quo ante of the LOC [Line of Control] will be restored if it goes according to plan," Mr Mishra told reporters.
Pakistan's Foreign Minister, Mr Sartaj Aziz, told a hastily convened news conference in Islamabad that Indian and Pakistani military officials had agreed to a sector-by-sector ceasefire to end the Kashmir fighting.
Mr Vajpayee's spokesman said "the word `ceasefire' is not at all there, from our side there is no word as `ceasefire', either partial or limited or anything."
"But there are indications that they have perhaps started withdrawing from the Mushkoh subsector, but that has to be determined by our officers," he added.
Indian officials said yesterday's meeting between the military commanders took place after Indian troops scored major victories in the Batalik and Drass sectors of northern Kashmir, driving infiltrators that it said consisted mainly of Pakistani army regulars back towards the LOC.
Mr Aziz said in Islamabad that the agreement to end two months of bitter hostilities was worked out at the unannounced meeting of the directors-general of military operations.
India's autonomous poll panel announced yesterday that fresh parliamentary elections, caused by the fall of Hindu nationalists three months ago, would be held in September-October. The Election Commission said the staggered polls - the second in as many years - would be held all over the country, including Kashmir, on September 4th, 11th, 17th, 24th and October 1st. It said the millions of votes would be counted on October 5th and 6th. Final results would be announced within 48 hours.