Pakistani and Indian military officials have agreed to avoid artillery exchanges in Kashmir.
The Pakistani military said the understanding was reached between the sides during a special hotline contact involving the director generals of military operations.
It said both sides "agreed to undertake sincere measures to improve the existing situation, ensuring peace and avoidance of hardships to the civilians along the borders".
It added that both sides agreed to fully implement the 2003 ceasefire agreement "in letter and spirit forthwith and to ensure that henceforth the ceasefire will not be violated by both sides".
Kashmir is split between Pakistan and India and both claim it in its entirety.
The announcement comes after several soldiers and civilians died in the the disputed Himalayan region in recent weeks.