Pakistan said yesterday the downing of an Indian spy drone by its jets showed its determination to defend every inch of territory as the US prepared a fresh diplomatic push to avert war in South Asia.
Indian and Pakistani forces exchanged more fire on their frontier, where a million men are poised for war, and an Indian official said three soldiers were killed when troops intercepted suspected militants infiltrating Indian Kashmir from Pakistan.
At least seven civilians were killed in cross-border firing from both sides.
The Pakistani military said in a statement the unmanned Indian aircraft was shot down at around 11pm on Friday and crashed near Raja Jang, south of Lahore, Pakistan's second city.
The developments clouded optimism generated after US Deputy Secretary of State Richard Armitage completed a peace mission to the region yesterday, saying he felt "very good" after talks with Indian officials.
Pakistan's military said the plane incident showed the country's readiness to defend itself but the foreign minister later urged restraint.
Indian officials did not provide much detail but said an unmanned reconnaissance plane went missing after a routine flight near the border with Pakistan.
"In the current state of deployment of armed forces, unmanned aerial vehicle missions from either side are a routine feature," an Indian air force spokesman said without elaborating.
The Pakistani military said it hoped India had been taught a lesson.
"Pakistan's determination to defend every inch of its land and airspace has been proved by [the] downing of India's spy plane," the official APP news agency quoted military spokesman Major-General Rashid Qureshi as saying.
"We hope India learns a lesson and stops violation of Pakistan's land and airspace," he said.
Foreign Minister Abdul Sattar later said responsible states must be careful not to provoke an escalation in tension.
"Pakistan continues to exercise restraint and responsibility in order to prevent any aggravation of the situation," he told reporters.
Armitage was due to brief US Secretary of Defense Donald Rums-feld later yesterday before Rums-feld flies to the region next week. He said on Friday he had specific proposals to present to the nuclear-armed rivals but declined to give details.
India and Pakistan have stepped up preparations for war even as governments around the globe feverishly seek to cool tempers.
Meeting in Madrid, foreign ministers and officials from the 15 EU nations and 10 Asian countries urged India and Pakistan to reverse a "spiral of confrontation."
Armitage told India on Friday that Pakistan was committed to taking permanent action against Islamic militants, a pledge that could help ease tension in the region.
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