A deadly attack on tourists in the disputed Kashmir last week has plunged relations between India and Pakistan to new lows, with both sides hinting at imminent military action.

Pakistan is bracing for Indian military action before Thursday night, officials warned, but cautioned that neither side would benefit from a return to war.

Pakistan accused India on Wednesday of planning an imminent military strike using a terror attack that killed 26 Indian tourists in the disputed Kashmir region last week as a "false pretext" to hit out at its neighbor.