Pakistani and Indian border guards traded gunfire and mortar shells on August 4 along their disputed border in the Himalayan region of Kashmir, killing two Pakistanis and an Indian, officials said.
At least 14 civilians, including women and children, also were wounded by Indian fire in the Bajwat sector near Sialkot, a city in the eastern Punjab Province, Pakistan's military said.
An official with India's border security force said the Pakistani fire wounded four civilians.
The two sides blamed each other and vowed retaliation for the incident.
At least seven civilians have died on the Pakistani side since prime ministers from the South Asian nations met in Russia in July and announced several steps to lower border tensions.
Even so, a 2003 cease-fire largely has held despite small but regular skirmishes.
Observers warn that border clashes still could scuttle efforts to normalize relations between India and Pakistan, who have fought three wars since gaining independence from Britain in 1947.