Although militants are known to have training camps in Pakistan, Islamabad denies the charge. Moulvi Mohammed Farooq, chief Muslim priest of Kashmir valley, killed by unidentified gunmen. At least 50 people killed when troops fire on mourners. Indian troops lay siege to Hazratbal shrine where about 150 armed guerrillas are holed up. Protesters against siege march in Bijebehara town, where firing by troops kills 32.
Hazratbal militants surrender peacefully.
Diplomats of both countries fail to narrow differences on Kashmir. Pakistan rules out more talks unless India stops alleged human rights violations in Kashmir. Facing widespread outrage, government abandons plan to hold first state assembly elections since 1987. Al-Faran guerrillas kidnap five Western tourists, one of whom, a Norwegian, is later found dead. Pakistani and Indian military officers meet on ceasefire line dividing Kashmir to ease tension after clashes.