Simla Agreement — LOC Established

Indian PM Indira Gandhi and Pakistani PM Zulfikar Ali Bhutto signed the Simla Agreement on July 2, 1972. The agreement transformed the 1949 ceasefire line into the Line of Control (LOC), committed both sides to resolve disputes bilaterally, and established diplomatic normalization. India returned 93,000 Pakistani POWs. The Simla Agreement remains the foundational bilateral framework.