Berliner Boersenzeitung - Pakistan says it shot down Indian drone along Kashmir border

The Indian army also said that both sides exchanged fire for a fifth straight night along the Line of Control (LoC), a heavily fortified zone of high-altitude Himalayan outposts.

There was no immediate confirmation from Pakistan on the exchange of fire but state broadcaster Radio Pakistan reported that the military had shot down an Indian "quadcopter", calling it a violation of its airspace.

Relations between the nuclear-armed neighbours have plummeted after India accused Pakistan of backing an attack in Indian-administered Kashmir on April 22 in which 26 men were killed.

Islamabad has rejected the charge and both countries have since exchanged gunfire in Kashmir, diplomatic barbs, expelled citizens and ordered the border shut.

The unmanned Indian aircraft had attempted to conduct surveillance along the LoC in the Manawar Sector of the Bhimber area, the Radio Pakistan report said.

It did not say when the incident happened. There was no comment from New Delhi.

India said the "Pakistan Army resorted to unprovoked small arms firing across the Line of Control" overnight Monday to Tuesday. The gunfire took place in areas opposite Kupwara and Baramulla districts, as well as in the Akhnoor sector, it said.

The Indian army said its troops had "responded in a measured and effective manner to the provocation". There were no reports of casualties.

India has said Tuesday is the deadline for Pakistani citizens to leave.

- 'Exercise restraint' -

Analysts say they fear bellicose statements will escalate into possible military action.

Muslim-majority Kashmir has been divided between India and Pakistan since their independence from British rule in 1947. Both claim the territory in full.

Rebels in the Indian-run area have waged an insurgency since 1989, seeking independence or a merger with Pakistan.

Indian police have issued wanted posters for three men -- two Pakistanis and an Indian -- who they say are members of the Pakistan-based Lashkar-e-Taiba group, a UN-designated terrorist organisation.

They have announced a two million rupee ($23,500) bounty for information leading to each man's arrest and carried out sweeping detentions seeking anyone suspected of links to the killers.

The United Nations has urged the arch-rivals to show "maximum restraint", while China, which shares a border with both India and Pakistan, on Tuesday repeated its call on both sides to "exercise restraint".

"Both India and Pakistan are important countries in South Asia. Their harmonious coexistence is crucial to the peace, stability and development of the region," foreign ministry spokesman Guo Jiakun said.

Iran has already offered to mediate and Saudi Arabia has said Riyadh was trying to "prevent an escalation".

US President Donald Trump downplayed tensions, saying on Friday the dispute will get "figured out, one way or another".

(Y.Berger--BBZ)