Pakistan has said it will release the Indian pilot that was captured yesterday as a “gesture of peace”, prime minister Imran Khan announced.
The pilot, who is currently in custody, will be allowed to leave on Friday as efforts to cool the crisis between the two nuclear-armed neighbours continues.
Locals were forced to flee from their homes in Kashmir as India and Pakistan exchanged gunfire through the night.
Jet fighters were seen over the mountainous region one day after the two nuclear-armed nations had claimed to have shot down each other’s warplanes.
There were no immediate reports of casualties but those living in the disputed region were seen fleeing the area with no imminent ceasefire in sight.
Members of Indian prime minister Narendra Modi’s Bharitiya Janata Party (BJP) called for more military action, suggesting the conflict could worsen.
An Indian government source told The Independent that relations with Pakistan would not return to normal, even with the return of their pilot.
World powers have called on the nations to de-escalate the tensions which started after a suicide car bombing on 14 February killed more than 40 Indian paramilitary personnel.
But the risk of conflict rose dramatically on Tuesday when India launched an air strike into Pakistani territory on what it said was a militant training base – the first such raid since the two nations’ 1971 war over territory that later became Bangladesh.
New Delhi claimed at least 300 militants were killed in the strike, while Pakistan said no one was killed.
The situation escalated further yesterday when Pakistan said it had shot down an Indian aircraft and captured a pilot.
India acknowledged one of its jets was “lost” and that its pilot was “missing in action”.
India also said it shot down a Pakistani plane, something Islamabad denied.
Here is how we covered the day's events
New Delhi claimed at least 300 militants were killed in the strike, while Pakistan said no one was killed.
The two nations clashed yesterday when Pakistan said it had shot down two Indian aircraft while India claimed to have also shot one down.
India acknowledged one of its jets was "lost" and that its pilot was "missing in action".
Thai Airways International cancelled more than a dozen flights to and from Europe after Pakistan closed its airspace.
Flights to and from London, Munich, Paris, Brussels, Milan, Vienna, Stockholm, Zurich, Copenhagen, Oslo, Frankfurt and Rome had been scheduled to fly over Pakistani airspace on Thursday, Thai Airways said in a statement.
Trump told reporters at the end of a two-day summit with North Korean leader Kim Jong Un in Vietnam that India and Pakistan have "been going at it" and that the US has been involved, "trying to help them both out" to "see if we can get some organization and some peace."
I think probably that's going to be happening...We have, I think, reasonably attractive news from Pakistan and India."
The remarks by Prime Minister Narendra Modi come amid tensions with Pakistan following the areal skirmish between the two countries in disputed Kashmir.
Narendra Modi says India will 'fight as one' in first comments since downing of planes over Kashmir
Pakistan's Imran Khan has urged India to engage in talks and let 'better sense prevail'We are willing to return the captured Indian pilot if it leads to de-escalation."
A temporary closure of air space over Pakistan has caused chaos for travellers, especially between Asia and Europe.
In Bangkok, a busy hub for transcontinental flights, thousands of passengers were stranded. Airport officials said more than 4,000 were affected.
Those needing help were getting access to accommodation and alternative travel arrangements, they said, although some complained they were getting no help at all.
The terminal was so crowded that the chief of Thailand's immigration police, Surachate Hakparn, tweeted a warning to "Please spare your time for your trip!"
The Indian government made the move to share information comes after Pakistani prime minister Imran Khan offered talks with India.
Pakistan also said it will act against those linked to the Kashmir bombing if actionable intelligence is shared.
Foreign Ministry spokesman Lu Kang says China hopes "the two countries can meet each other halfway and resolve this issue via dialogue."
A UN-monitored ceasefire line agreed in 1972, called the Line of Control (LOC), splits Kashmir into two areas - one administered by India, one by Pakistan.
Their armies have for decades faced off over the LOC. In 1999, the two were involved in a battle along the LOC that some analysts called an undeclared war. Their forces exchanged regular gunfire over the LOC until a truce in late 2003, which has largely held since.
