Pakistan closed its air space for Indian airlines and rejected New Delhi's suspension of a water sharing treaty on Thursday in retaliation for neighbouring India's response to a deadly militant attack in the Indian-ruled part of Kashmir.

The agreement split the Indus and its tributaries between the two countries and regulated water sharing. India was granted the use of water from three eastern rivers - Sutlej, Beas and Ravi - while Pakistan was granted most of the three western rivers - Indus, Jhelum and Chenab.

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.