Simla Agreement on Bilateral Relations between India and Pakistan, signed by Prime Minister Indira Gandhi and Pakistani President Z. A. Bhutto, on July 2, 1972 in Simla. The agreement was agreed upon and signed after the 1971 Indo-Pak War, after which East Pakistan was liberated, leading to the formation of Bangladesh. 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.   The two ministers invoked the 1972 Shimla Convention and said that bilateral issues could only be resolved with his help — and nothing else. 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. 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. The Simla Agreement, signed on 2 July 1972 by Prime Minister Indira Gandhi and Pakistani President Zulfikar Ali Bhutto, was much more than a peace treaty aimed at reversing the consequences of the 1971 war (i.e. the withdrawal of troops and the exchange of prisoners of war).
It was a blue impression for good-neighbourly relations between India and Pakistan. As part of the Simla Agreement, the two countries pledged to end the conflicts and confrontations that have affected relations in the past and to work towards lasting peace, friendship and cooperation. The Simla Agreement contains a number of guiding principles on which India and Pakistan have agreed and which both sides would adhere to in the management of relations between them. They insist on respect for the territorial integrity and sovereignty of the other; non-interference in the internal affairs of the other; respect for unity, political independence; sovereign equality; and hostile propaganda. However, the following principles of the agreement are particularly noteworthy: the immediate outcome of the 1971 war between India and Pakistan was the change of government in Pakistan and Zulfiqar Ali Bhutto, leader of the majority party of West Pakistan, took power on 20 December 1971. The 1971 war led to the dismemberment of East Pakistan. Pakistan had lost nearly 54% of its population, and 93,000 of its soldiers and civilians were in possession of India.