Naik Prem Bahadur Khatri and Rifleman Sukhbir Singh sustained critical injuries in the firing and died later, the defence spokesperson said.
India also strongly protested Pakistan's continued support to cross border terrorist infiltration into India, including through supporting cover fire provided by Pakistan forces.
Pakistan Army initiated unprovoked ceasefire violation by firing with small arms & shelling with mortars along LoC in Shahpur, Kirni and Qasba sectors in district Poonch, a defence spokesman said.
The government had assisted people in making individual bunkers initially but due to ceasefire, these bunkers were turned either into storerooms or as septic tanks.
Pakistan Army is restoring to such heightened ceasefire violation in a bid to increase the number of infiltration to create instability in Kashmir valley.
This was reported even as another encounter was underway in Srinagar, where two J&K policemen and a CRPF trooper were injured.
The cross-border firing started in Degwar sector around 8:40 am, drawing retaliation from the Indian Army, the spokesman said.
A defence spokesperson said that the Pakistani troops initiated unprovoked firing at 7:15 pm in Mankote sector.
There was no immediate report of any casualty in the Pakistani firing and shelling in Balakot and Mendhar sectors, defence spokesperson said.