This article reports on the political conditions of the two countries, India & Pakistan as of January 09, 2004. As these countries have declared a ceasefire in the divided Himalayan region of Kashmir. The ceasefire is the most important in a series of recent moves aimed at easing tensions between the two nuclear-armed neighbors ahead of a regional summit to be held in January 2004. Tension between nuclear-armed neighbors India and Pakistan is beginning to ease following the declaration of a ceasefire in the disputed Himalayan region of Kashmir. In a televised address, Pakistani Prime Minister Zafarullah Khan Jamali said that he had ordered soldiers stationed along the 470km-long line of control to observe a unilateral ceasefire from the Muslim holiday of Eid al-Fitr on November 26. The Kashmir ceasefire is perhaps the most significant in a series of recent measures aimed at easing tensions between the two rivals, which, early last year, had threatened to escalate into war following an attack on the New Delhi parliament. Since April, when Indian Prime Minister Atal Behari Vajpayee offered a 'hand of friendship' to Pakistan during a rare visit to Srinagar, Kashmir's summer capital, the two countries have restored full diplomatic relations, resumed limited bus services and agreed to re-establish air links.