In 2001, the dialogue process slowly took place. At the Agra (India) summit in August 2001, the parties did not mention the “Lahore Process” but discussed some of the issues that play an important role in this process. India said it would implement the unilateral confidence-building (CBM) measures announced on the eve of the summit on trade, visas, educational exchanges and security. Both sides discussed measures to reduce nuclear risk, cooperation to end drug trafficking and other cross-border issues, and trade relations. However, the parties were unable to agree on a joint statement due to differences of opinion on the Kashmir issue. The Shimla Agreement was ratified by both India and Pakistan as part of their respective constitutional procedures. The Lahore Declaration was a bilateral agreement and a government agreement between India and Pakistan. The treaty was signed on 21 February 1999, at the end of a historic summit in Lahore, and ratified the same year by the parliaments of both countries. The declaration was signed by Indian Prime Minister Atal Bihari Vajpayee and his Pakistani counterpart Nawaz Sharif. While Kashmir spoke only of “maintaining the line of control,” a clause was added to India`s insistence that the two countries would settle their differences only through “peaceful means through bilateral negotiations or other peaceful mutually agreed means,” Guha writes.
This theoretically excludes third-party mediation in Kashmir. In 1998, the foreign ministries of both countries launched a peace process to ease tensions in the region. On 23 September 1998, the two governments signed an agreement on the recognition of the principle of the establishment of an environment of peace and security and the resolution of all bilateral conflicts, which became the basis of the Lahore Declaration. [1] On 11 February 1999, the Pakistani Ministry of Foreign Affairs announced the state visit of Indian Prime Minister Atal Bihari Vajpayee on the first bus link between the two countries. In 2003, Musharraf called for a ceasefire during the LoC. India accepted its proposal and put into effect on 25 November a ceasefire agreement, the first formal ceasefire since the start of the insurgency in Kashmir. In October, after a two-day meeting, the two countries issued the joint statement of Pakistan and India on 4 October. They recalled the results of previous discussions, which were expressed in the joint statements of 6 January 2004, 24 September 2004, 18 April 2005 and 14 September 2005.