According to an civil administration official, the tensions have eased and the routine trade and travel between the two sides of Jammu and Kashmir, divided between India and Pakistan would likely be resumed from Monday.
This dramatic turn around came after the Indian and Pakistani armies exchanged sweets along the LoC Saturday as a mark of goodwill gesture on the occasion of India's 64th Republic Day.
The cross-LoC trade and travel, which was described as one of the biggest confidence building measures, was suspended after the Jan 8 brutal killing of two Indian soldiers by the Pakistani troops.
Pakistan had refused to open the gates at Chakan-da-Bagh along the LoC in Jammu and Kashmir's Poonch district.
India-Pakistan relations took a hit after New Delhi accused Pakistani troops of brutally killing two Indian soldiers close to the LoC Dec 8 and beheading one of them. The chopped head was carried away.
Pakistan accused Indian troops of killing two Pakistani soldiers on two separate days.
In retaliation to the beheading and the mutilation of the other soldier, Prime Ministers Manmohan Singh declared that there can be no business as usual with Pakistan.
The Indian and Pakistani armies have been traditionally greeting each other on the winding LoC, which divides Jammu and Kashmir between the two countries, ever since a ceasefire came into effect in 2003.
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