Relations between India and Pakistan are cratering following a deadly militant attack in Indian-administered Kashmir that has sparked tit-for-tat reprisals and raised fears of another military escalation between the nuclear-armed rivals.

An attack on tourists in India's Himalayan territory of Kashmir this week sparked a new crisis between nuclear armed South Asian neighbours India and Pakistan, with New Delhi blaming militants with "cross-border linkages" for the killings.

Pakistan Prime Minister Shehbaz Sharif on Saturday said his country is ready to participate in a neutral investigation into the Pahalgam terror attack, adding that they will respond with “full force and might” to any stopping of Islamabad’s share of river waters after the suspension of the Indus Waters Treaty by New Delhi.