The summit eventually culminated in the Simla Agreement, a pact signed on 2 July 1972 by Indira Gandhi, then Indian Prime Minister, and Pakistani President Bhutto. The summit conference between Bhutto and Indra Gandhi opened in Simla on the agreed date. The summit conference was held from June 28 to July 2, 1972. The objective of the agreement was to define the measures envisaged to normalize bilateral relations and to resolve mutual disputes through peaceful means and bilateral negotiations. India wanted to solve all the problems in one package, so it proposed a treaty of friendship that required the two countries to refrain from the use of force in dispute resolution, not to interfere in each other`s internal affairs, not to participate in the settlement of their disputes and to renounce military alliances directed against each other. Pakistan wanted to focus on issues as immediate as the release of prisoners of war, the withdrawal of troops and the resumption of diplomatic relations. It rejected the Indian proposal on the grounds that it would imply a lasting adoption of the partition of Kashmir and the withdrawal of the UN Kashmir dispute. The summit conference between Bhutto and Indra Gandhi opened in Simla on the agreed date. The Simla Agreement Conference was held from June 28 to July 2, 1972. On July 2, 1972, former Prime Minister Indira Gandhi signed the shimla agreement with then-Pakistani Prime Minister Zulfikar Ali Bhutto. Given the situation that required an agreement between the Indian and Pakistani leaders, Zulfikar Ali Bhutto, the Pakistani president was invited to a summit in Simla during the last week of June 1972. The summit was to lead to a peace treaty that was to lead to the withdrawal of troops and the return of prisoners of war after the 1971 war.
According to historian Ramachandra Guha, India wanted a “comprehensive treaty to solve all outstanding problems,” while Pakistan preferred a “piecemeal approach.” Although India wanted a treaty, it reached an agreement because of the bitter negotiations of the Pakistanis. Donald Trump`s offer to help India and Pakistan resolve the Kashmir issue became a major controversy after India rejected the US president`s claim that Prime Minister Narendra Modi had requested it. As the U.S. government tries to downplay Trump`s remarks by calling the Kashmir issue “bilateral” to “discuss India and Pakistan,” the focus has shifted again to previous “bilateral agreements,” whose 1972 Simla Agreement (or Shimla Agreement), signed by then-Indian and Pakistani Prime Ministers Indira Gandhi and Zulfikar Ali Bhutto , for friendly relations between the two countries. The agreement is the result of the two countries` determination to “end the conflict and confrontation that have so far weighed on their relations.” He designed the steps to be taken to further normalize mutual relations and also defined the principles that should govern their future relations.   In 2001, then-Pakistani President Pervez Musharraf visited India on 14 and 16 July for a historic two-day summit in Agra at the invitation of Prime Minister Vajpayee. However, the talks failed and no text of agreement could be found. The agreement emphasizes respect for the sovereignty, territorial integrity, political independence and unity of the other.
It also mentions non-interference in the internal affairs of the other and hostile propaganda. The two ministers invoked the 1972 Shimla Agreement and said that bilateral issues could only be resolved with his help — and nothing else. Six months after the liberation of Bangladesh, then Prime Minister Indira Gandhi and former Pakistani President Zulfiqar Ali Bhutto met on 2 July 1972 in Shimla to sign an agreement that provides a framework for the reciprocal settlement of their differences.