Pakistan denies India's allegations and has suggested U.N. monitors in the region conduct an inquiry - a call that India rejected, saying it didn't want to internationalize the issue.
Pakistan and India struck a cease-fire agreement over Kashmir in November 2003. There have been periodic violations of the cease-fire, but the incidents during the past week have been the most serious.
In Pakistan, the Supreme Court's arrest order for Prime Minister Raja Pervaiz Ashraf on Tuesday was likely to inflame antagonism between the government and the court. The order is linked to allegations of corruption in bidding on private power stations. Ashraf previously served as minister for water and power.
The arrest order could provide ammunition for Tahir-ul-Qadri, a Muslim cleric who is leading massive protests in Islamabad to press for the removal of the government, which he says is made up of corrupt politicians.
Abbot reported from Islamabad.
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