India and Pakistan`s military operations chiefs are set to hold discussions on Monday, as calm returns to the border following a ceasefire brokered after days of cross-border hostilities.
India confirmed the planned talks amid a lull in firing, marking the first peaceful night along the border in recent days.
The ceasefire, announced Saturday with support from U.S. President Donald Trump, followed four days of intense violence and diplomatic pressure from Washington.
While India`s army reported no fresh ceasefire violations overnight, schools near the border remain closed.
India had earlier warned Pakistan via a hotline message, signaling readiness to respond to further aggression. Pakistan’s military has denied any violations.
The renewed violence erupted after India blamed Pakistan for an attack that killed 26 tourists.
In retaliation, India launched strikes on what it claimed were nine terrorist sites in Pakistan and Pakistani-administered Kashmir—claims Islamabad denies, asserting those were civilian locations. Pakistan has called for a neutral investigation.
The ceasefire also brought a sense of relief to markets. Pakistan’s benchmark share index surged nearly 9% on Monday, prompting a brief trading halt, while Indian markets rose about 2.5%, recovering from recent losses.
Tensions had erased $83 billion from both nations’ equities in just two days prior to the ceasefire.
Meanwhile, the IMF approved a $1.4 billion climate resilience loan for Pakistan and cleared the first review of a $7 billion support program.
Islamabad expressed gratitude to the U.S. for mediating and welcomed Trump’s offer to facilitate Kashmir talks—an offer India has not acknowledged.
India maintains Kashmir is a bilateral issue and rejects third-party involvement. The opposition Congress party has urged the government to clarify its position, especially on U.S. statements regarding Kashmir.
