ISLAMABAD (BLOOMBERG) - Pakistan reopened its airspace over the eastern city of Lahore, near its border with India, signalling tensions between the two countries may be easing.

Flight operations at Lahore's international airport will resume on Sunday (March 3) after they were suspended on Feb 27, Pakistan's Civil Aviation Authority said on its website.

The nation had partially opened its airspace on March 1 by allowing flights from Karachi, Islamabad, Peshawar and Quetta but kept operations suspended at airports nearer to India.

India and Pakistan are embroiled in the worst military tensions in decades.

India bombed targets inside Pakistan last Tuesday, saying it hit a terrorist training camp blamed for a Feb 14 attack that killed 40 of its paramilitary troops.

A clash a day later led to the capture of Indian Air Force pilot by Pakistan, and he was subsequently released on Friday to defuse the situation.

While tensions may be easing, skirmishes are still occurring. Pakistan's army said on Saturday that at least four people were killed by Indian troops in cross-border firing.