Indian PM Singh and Pakistani President Musharraf agreed at Havana Non-Aligned Summit 16 September to resume normalisation talks, and set up joint mechanism against terror; foreign secretary-level discussions in Delhi to be first step. Singh said process success would depend on Pakistan’s efforts to end cross-border attacks. Talks jeopardised 29 September when Mumbai police alleged Pakistani intelligence service ISI assisted Lashkar-e-Tayyaba group in planning July train bombings. Hizb-ul-Mujahideen militants and government failed to agree Ramadan ceasefire, violence continued in and around Srinagar: 7 killed on 25 September.

India and Pakistan engaged in tit-for-tat expulsion of diplomats in moves reminiscent of pre-normalisation process antagonism. Clashes continued throughout month with surge of grenade attacks in run up to 15 August Indian independence day. 5 Pakistan-based militants killed in attempt to cross Line of Control 16 August. Pakistan alleged violations of Line of Control ceasefire by Indian forces. Further 9 killed, including 3 soldiers, in security operations in Kulgam-Qazigund area. Lashkar-e-Toiba militant allegedly linked to 11 July Mumbai bombings charged with establishing terror network in Mumbai.

India halted normalisation process with Pakistan after 11 July Mumbai bombings. Further progress conditional on tangible Pakistani moves against banned jihadi groups like Lashkar-e-Tayyaba and Hizbul Mujihideen. India captured Mudassir Gojri, top militant commander of Lashkar-e-Tayyaba blamed for numerous tourist killings including July attacks that killed 8. Suspected militants shot dead 4 Hindus in Indian Kashmir 13 July. Sakina Itoo, leader of National Conference party, survived 8 July grenade attack in which 5 supporters killed. New government installed in Pakistani-administered Kashmir after elections opposition parties claimed were rigged. Sardar Attiq Ahmed Khan, head of All Jammu and Kashmir Muslim Conference, sworn in as PM 24 July.

Sporadic violence continued throughout Indian-controlled Kashmir. 8 militants reportedly killed attempting to cross into Indian controlled territory 30 June. Previously militants attacked villagers in Udhampur district, killing 1 and mutilating 2 on suspicion of being informers. 8 lndian labourers from Bihar shot dead by suspected militants in Anantnag district. All Parties Hurriyat Conference called protest against alleged desecration of Koran and mosque by Indian security forces: 2 killed in demonstrations. Second bus service began linking Indian and Pakistani controlled areas but mutual accusations over failed prisoner swap dampened optimism.

Violence continued in Indian-controlled Kashmir in apparent reaction to positive talks between Indian PM Singh and main moderate faction of APHC that set up unprecedented framework for future talks. Violence increased before 24-25 May roundtable in Srinagar with grenade attacks and suicide bomber killing 15. Militants attacked Congress party rally in Srinagar while warning given to APHC of “dire consequences” for participation in roundtable prompting APHC withdrawal 22 May. Police reportedly found bodies of 4 Muslims in Baramulla district, allegedly killed for being police informers. Separate India/Pakistan talks on Siachen glacier and Sir Creek border disputes ended without breakthrough.

Upsurge in attacks by separatists in first major violence since November 2005. 22 Hindu villagers killed by militants in Doda district 1 May. Wave of Srinagar grenade attacks 14 April and gunbattles in Srinagar and Jammu and Kashmir killed at least 17. Kashmiri radical separatist groups claimed responsibility. Senior opposition politician Ali Mohammad Naik wounded and 2 guards killed 17 April in attack claimed by Islamic Front militants. By-elections held for 4 seats for Jammu and Kashmir state assembly. 3 politicians reportedly killed by insurgents. Indian PM Manmohan Singh to meet Kashmiri separatist leaders in New Delhi early May.

India and Pakistan announced schedule for third round of composite dialogue. Meetings began 28 March and will conclude June followed by 2 high-level review sessions July. Pakistani accusations of Indian inaction on Kashmir and Indian calls for end to cross-border terrorism soured atmosphere. Indian PM Manmohan Singh made conciliatory speech while inaugurating bus service 24 March. Clashes continued between security forces and militants while Lashkar-e-Kahar militants claimed responsibility for bombings in Indian Uttar Pradesh state.

Confidence-building  measures  continued  with resumption of train service across Thar desert after 40-year suspension. Indian PM Manmohan Singh called conference of Indian Kashmiri politicians and separatist leaders for 25 February; many declined calling talks “premature”. Strikes in Indian-controlled Kashmir followed fatal shooting of 4 boys 22 February, apparently in crossfire between security forces and separatists, while further separatist violence killed 5 next day. Clashes erupted between Buddhists and Muslims in Ladakh 8 February, after torn pages of Koran found near mosque in Kargil. India reportedly withdrew 5,000 troops from Indian- controlled Kashmir in response to improving security situation.

Indian Foreign Secretary Shyam Saran and Pakistani counterpart, Riaz Mohammad Khan, met in Delhi for third round of bilateral normalisation dialogue 17 January and agreed to sustain process. Cross-border travel links increased with additional bus and truck services; further bus link between Sikh holy cities of Amritsar and Nankana Sahib, and rail link between Rajasthan state and Sindh province to start in February. Indian troops reportedly shot dead senior leader of militant group Lashkar-e-Taiba responsible for series of blasts in New Delhi in October 2005. Clashes between Indian security forces and militants crossing Line of Control into Indian-controlled territory killed 14.

Latest confidence-building measure, “Punjab Express” bus between Lahore and Amritsar, introduced 11 December. Next round of official-level talks to discuss peace and security issues, including Kashmir, due January. Violence continued with 9 killed in clashes near Srinagar 14 December and Rajouri district of Jammu 16 December.