The sources said the exchange of small-arm fire took place with extremist elements as intelligence reports suggested that Pakistani army regulars had pulled out on orders from their superiors.

India had announced on July 17 that any Pakistani intruder found on the Indian side of the line of control (LoC) would be treated as hostile and shot.

The firing took place in three places in the Mushkoh area where the army was carrying out verification to establish whether all the Pakistani intruders had withdrawn.

An army spokesman in New Delhi said the intruders had withdrawn from Batalik, Kaksar and Dras sub-sectors in Kargil and the Indian army had recaptured dominant positions in these three areas.

Meanwhile, the sources saidarmy units were moving very slowly in Mushkoh, overlooking Dras and Matayan areas, as the retreating Pakistani forces had laid mines and booby-traps.

They said Pakistani regulars were occupying some position in Batalik sub-sector along the LoC and not vacating the 1 km zone from the LoC as agreed by the DGMOs of the two countries who had discussed the modalities of the withdrawal on July 11.