Two people, including a one-year-old baby, were killed and seven others injured in firing by Indian troops across the Working Boundary, the Inter-Services Public Relations (ISPR) said on Monday.
"Due to unprovoked Indian firing at the Working Boundary last night, a civilian Muhammad Latif of village Janglora and a minor Haniya embraced shahadat while seven civilians were injured," the statement said.
The ISPR said Pakistan Rangers Punjab responded "befittingly" to Indian firing and shelling in Harpal, Pukhlian and Charwah sectors on the Working Boundary.
Intermittent exchange of fire continued through the night, the statement said.
The injured civilians have been shifted to Combined Military Hospital Sialkot.
In its last statement on Sunday night, the ISPR said Indian Border Security Force (BSF) troops opened fire in the Chuprar and Harpal sectors.
The latest incident of cross-border firing comes as tensions simmer between Pakistan and India over the Kashmir issue.
The Indian prime minister stepped up a drive to isolate Pakistan diplomatically after the Uri army base attack last month.
Hours after the attack occurred, Indian Home Minister Rajnath Singh termed Pakistan a 'terrorist state'. India also accused Pakistan of involvement in the attack.
The Uri attack occurred days before Prime Minister Nawaz Sharif was set to address the United Nations General Assembly regarding Indian human rights violations in held Kashmir.
Following the attack, India claimed to have conducted a cross-border 'surgical strike' against 'launch pads of terror' in Azad Jammu and Kashmir — a claim Pakistan has strongly rejected.
Pakistan maintains that India is attempting to divert the world's attention away from 'atrocities' committed by government forces in India-held Kashmir.
Pakistan and India have locked horns over the Kashmir issue since Indian forces stepped up a crackdown against protesters after Hizbul Mujahideen commander Burhan Wani was killed by government forces in July.