The Shimla Agreement, formally known as the Agreement on Bilateral Relations between India and Pakistan, was signed on July 2, 1972, in Shimla, India. The agreement was signed between the then-Prime Minister of India, Indira Gandhi, and the then-President of Pakistan, Zulfikar Ali Bhutto.

The Shimla Agreement was signed after the 1971 Indo-Pakistani War, which resulted in the creation of Bangladesh. The agreement aimed to establish a framework for the normalization of bilateral relations between India and Pakistan after the war. The agreement called for the release of all prisoners of war and the withdrawal of all armed forces to their pre-war positions.

The Shimla Agreement also established a mechanism for resolving disputes between India and Pakistan through peaceful means. The two countries agreed to hold talks, referred to as the Simla Dialogue, to resolve any issues that may arise between them.

One of the key provisions of the Shimla Agreement was the agreement to respect the Line of Control, which separated the Indian-administered Kashmir from Pakistan-administered Kashmir. The agreement acknowledged that a final settlement of the Kashmir dispute would be reached through peaceful means in accordance with the UN Charter.

The Shimla Agreement was a significant milestone in the history of India-Pakistan relations. It provided a framework for resolving disputes between the two countries through peaceful means and helped to reduce tensions between them. However, subsequent events and incidents have strained the relations between India and Pakistan, and the Kashmir dispute remains unresolved.

In conclusion, the Shimla Agreement was signed on July 2, 1972, in Shimla, India, between the then-Prime Minister of India, Indira Gandhi, and the then-President of Pakistan, Zulfikar Ali Bhutto. The agreement aimed to establish a framework for the normalization of bilateral relations between India and Pakistan after the 1971 Indo-Pakistani War. It established a mechanism for resolving disputes between India and Pakistan through peaceful means and called for the respect of the Line of Control in Kashmir.