Pakistan on Thursday cancelled visas for Indian nationals, closed its airspace for all Indian owned or Indian operated airlines, and suspended all trade with India including to and from any third country.
The retaliatory measures follow India's decision to suspend visas for Pakistani nationals in the aftermath of a deadly attack by gunmen in Kashmir that killed 26 people, mostly tourists.
Tuesday's attack was the worst assault in years targeting civilians in the restive region that has seen an anti-India rebellion for more than three decades.
Tensions between India and Pakistan were high on Thursday as New Delhi mounted a diplomatic offensive against Islamabad, blaming it for a deadly attack that killed 26 people in Kashmir and shattered India's claims of calm in a disputed region where a bloody rebellion against Indian rule has been ongoing for decades.
A rare attack on civilians - mostly tourists who were visiting a popular scenic meadow - shocked and outraged India and prompted calls for action against their country's archenemy, Pakistan.
The Indian government did not publicly produce any evidence connecting the attack to its neighbor, but said it had "cross-border" links to Pakistan.
Pakistan denied any connection to the attack, which was claimed by a previously unknown militant group that called itself the Kashmir Resistance.
In a statement issued Thursday, India's foreign ministry said all visas issued to Pakistani nationals will be revoked with effect from Sunday. It also advised Indians citizens not to travel to Pakistan.
India and Pakistan each administer a part of Kashmir, but both claim the territory in its entirety. New Delhi describes all militancy in Kashmir as Pakistan-backed terrorism. Pakistan denies this, and many Muslim Kashmiris consider the militants to be part of a home-grown freedom struggle.
The killings also put pressure on Prime Minister Narendra Modi's Hindu nationalist government to respond aggressively. His government announced a series of diplomatic actions against Islamabad while hinting at plans for more punishment.
Pakistan has responded angrily that it has nothing to do with the attack and said it would formulate a response to India's actions on Thursday in the National Security Committee meeting, the country's highest decision-making forum of senior civil and military officials.
Dozens of demonstrators in Islamabad and other cities in Pakistan rallied against India's suspension of a water sharing treaty, demanding their government retaliate.
"India has taken irresponsible steps and leveled allegations," Pakistan's Foreign Minister Ishaq Dar told local Dunya News TV channel.
Associated Press