The Simla Agreement is a bilateral treaty signed between India and Pakistan in 1972 following the Indo-Pakistani War of 1971. The agreement was signed by Indian Prime Minister Indira Gandhi and Pakistani President Zulfikar Ali Bhutto on July 2, 1972, in the city of Simla (now Shimla) in northern India.

The Simla Agreement aimed to provide a framework for the normalization of relations between the two countries, including resolving the issue of prisoners of war and defining the Line of Control (LOC) in the disputed territory of Jammu and Kashmir.

Under the Simla Agreement, both India and Pakistan committed to resolving all disputes between them through peaceful bilateral negotiations. It also sought to create an atmosphere of trust and mutual respect between the two countries.

One of the key provisions of the agreement was the establishment of the LOC, which divided Jammu and Kashmir into two parts controlled by India and Pakistan. The agreement also required both countries to withdraw their forces to their respective sides of the LOC and to respect the ceasefire along the line.

The Simla Agreement was seen as a significant step towards stabilization of the India-Pakistan relationship and the normalization of their ties. However, the agreement has been criticized by some for not addressing the underlying issues that led to the Indo-Pakistani War of 1971, including the question of Jammu and Kashmir`s final status.

Overall, the Simla Agreement remains an important milestone in the history of India-Pakistan relations, and its legacy continues to influence the bilateral relationship between the two countries today.