Little progress at security talks between India and Pakistan cut short 4 July by violence at Islamabad Red Mosque. Summer increase in low-level violence included several attacks by suspected separatist militants on Hindu pilgrims. Indian Defence Secretary Shekhar Dutt recommended relocation of 20,000 troops from private and civic property in Jammu & Kashmir. Proposal would maintain current levels of troops involved in counter- militancy efforts along Line of Control.

Normalisation process slowed due to ongoing political turmoil in Pakistan. India said it would maintain troop levels along border of Jammu and Kashmir, citing increase in cross-border militancy.

Talks in Islamabad 17-18 May on Sir Creek boundary dispute failed to produce any agreement after exchange of survey maps. General strike observed 21 May in Indian Kashmir to mark anniversary of killings of 2 separatist leaders. Several separatists and Indian troops killed in clashes along Line of Control.

Indian authorities said violence in India- controlled Jammu & Kashmir fell two-thirds in 2006 to lowest level in 17 years. No agreement in 11th round of talks between New Delhi and Islamabad on Siachen Glacier issue. New Delhi hosted 24 April roundtable on Kashmir, but separatist parties stayed away as talks skirted subject of territory. Thousands protested in Srinagar 16 April in response to continued civilian casualties at hands of Indian police forces.

Hizbul Mujahideen member “Yaseen” killed by Indian forces 2 March. As protests continued over security force killings, New Delhi set up expert panel to consider reduction in Kashmir troop levels and revision to Armed Forces (Special Powers) Act that grants broad powers of detention. Defence ministers’ talks on Siachen glacier due 6 April in Rawalpindi.

India and Pakistan proceeded with dialogue process despite 18 February bombing of Lahore-Delhi train that killed over 60. Nuclear risk reduction pact signed during Pakistan FM Mahmood Kasuri’s visit to Delhi 21 February, but terror attack, attributed by some Indian security officials to Pakistan-based jihadis, overshadowed visit. India said Pakistan must end all “cross-border terrorism” if dialogue process to succeed. In shift, head of separatist APHC moderate faction Umar Farooq called for militants to support political solution, but said Indian troop withdrawal should be first move. Strike in Srinagar 6 February shut down city in protest at recent uncovering of Indian Army and police role in at least 5 “encounter killings” of civilians; 8 police arrested. Lashkar-e-Toiba commander Abu Talha reported killed by Indian police 28 February.

Continued engagement between Delhi and Islamabad, but no concrete progress on Kashmir sticking points. Indian FM Pranab Mukherjee reported “positive” visit to Islamabad 13 January but PM Singh said movement on Siachen Glacier dispute would be “premature”. Next talks due in March.

Pakistan President Musharraf mooted plan for autonomous Kashmir in exchange for Indian concessions. Plan would see Pakistan give up territorial claim and referendum demand if India accepted granting region autonomy within existing territorial borders, joint phased military withdrawal allowing "soft border" with free movement across Line of Control, and "joint supervisory mechanism" to govern cross- border issues. Musharraf ruled out full independence. PM Singh responded indirectly with messages of peace, but Delhi appears reluctant to move forward without Pakistani efforts to halt cross-border terrorist attacks. U.S. President Bush signed law 18 December allowing U.S. nuclear sales to India; no sales allowed to Pakistan.

Foreign secretary-level talks between India and Pakistan 14-16 November yielded little progress on Kashmir sticking points. Both countries agreed to implement mechanism to improve communication on anti-terrorism measures; agreement not expected to produce much shared intelligence or policy, but sign that normalisation process not derailed by July Mumbai train bombings.

Mixed messages over Delhi-Islamabad dialogue following India’s implication of Pakistani security services in Mumbai train bombings. First talks since July bombings due 13 November. Newly appointed foreign minister Pranab Mukherjee said peace with Pakistan desirable and that India would share “certain” evidence over bombings with Islamabad, while PM Singh warned 18 October that further dialogue would be strained unless Pakistan took greater action on terrorism. Violence escalated in Srinagar with series of clashes between separatists and Indian security forces: 10 killed in 24-hour gun battle 5 October after attack on security camp, claimed by Al-Mansurian militants. After string of protests in Indian-controlled Kashmir, Indian government postponed execution of militant Kashmiri Afzal Guru pending review of clemency appeal.