The military's media wing, Inter-Services Public Relations (ISPR), issued a situation update Saturday afternoon to notify that two soldiers had been martyred while returning fire to Indian posts firing across the Line of Control (LoC).

"Two Pakistan Army soldiers embraced martyrdom at Nakiyal Sector in exchange of fire while targeting Indian posts undertaking firing on civilian population," the ISPR statement read. "Martyrs include Havaldar Abdur Rub and Naik Khuram."

"Reports of casualties of Indian troops and damage to post due to effective response by Pakistan Army," it concluded.

Earlier, ISPR had reported Indian firing across the LoC, as a result of which two citizens were killed while two others, including a woman, were injured. Separately, our correspondent reported that a 19-year-old youth, identified as Abdul Ghaffar, was injured in Darra Sher Khan when he was shot at by an Indian sniper from across the LoC.

"Indian troops undertook firing along LoC. Exchange of fire in Hotspring, Tatta Pani and Jandrot Sectors where India also deliberately targeted civil population," the ISPR statement read.

The injured civilians have been evacuated to a hospital in Kotli.

Read more:AJK teenager dead, 3 injured in shelling by Indian troops across LoC

According to the ISPR, the Pakistan Army gave a "befitting response by targeting Indian posts".

The Pakistan Air Force (PAF) and Pakistan Navy continue to be "alert and vigilant", the ISPR said.

The firing comes as Pakistan and India reel from a week of high escalation which had raised fears of an all-out war after the PAF shot down two Indian aircraft for violating Pakistani airspace.

Analysts had expected the situation to de-escalate on Friday evening as Prime Minister Imran Khan released a captured Indian pilot, in an overture towards New Delhi.