Indian and Pakistani forces have been exchanging mortar and small arms fire across their border this evening.
The firing began in the afternoon and intensified after dark, acccording to a witness in Pakistan's Punjab province. There were no reports of casualties but villagers in the area, east of the town of Sialkot, were fleeing from their homes, the witness said.
The reports come after the Indian Prime Minister Mr Atal Behari Vajpayee said earlier today that war with Pakistan was not "a necessity" and that he intends to try to avoid it.
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Arriving in Nepal for a summit of South Asian leaders, Mr Vajpayee said that when he said previously India would use all means at its disposal in the event of war, he did not mean to include nuclear weapons.
But he said: "I am not satisfied with the steps taken by Pakistan to curb terrorism".
India is demanding Pakistan end its sponsorship of Muslim militants fighting Indian rule in the disputed Himalayan region of Kashmir. Pakistan denies the charge, saying it provides only moral support.
Diplomatic efforts to defuse the brewing regional crisis are "going on the right track", but tensions will not ease until India's military buildup is reversed, Pakistan has said.
The leaders of both nations have been bombarded with phone calls from the leaders of the US, the UN and other governments and groupings, urging restraint and talks.
Earlier, it was reported Indian soldiers had killed nine suspected Islamic militants in Kashmir.
AFP and