This agreement is ratified by both countries in accordance with their respective constitutional procedures and enters into force from the date of exchange of ratification instruments.  The Simla agreement reads as a communiqué rather than a peace agreement with a country that had waged war on India. Nothing in the agreement has put Pakistan in a state of good behaviour in the future. It also contained some ridiculous expectations, such as the clause that required both governments to “take all measures within their power to prevent hostile propaganda against each other.” The important part of the agreement included Pakistan`s recognition of Bangladesh. Other issues were discussed: the repatriation of refugees to India and the release of Bangladeshi and Pakistani nationals stranded in both countries. Pakistan has agreed to host an unspecified number of bihari Muslims from Bangladesh. Pakistan has also agreed to send back to Bangladesh nearly 150,000 to 200,000 Bengali citizens of the new nation-state of Bangladesh. The Shimla agreement was signed to lay the groundwork for a cooperative relationship with the emphasis on people-to-people contact. 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.
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. Shimla Agreement: July 2, 1972Shimla: What is it? The Shimla Agreement was signed on 2 July 1972 by Indira Gandhi, then Indian Prime Minister, and by Pakistani President Zulfikar Ali Bhutto, after the 1971 India-Pakistan War that liberated East Pakistan and led to the creation of Bangladesh. Among them, India and Pakistan have decided to abandon the conflict of the past and focus on building lasting friendship, peace and cooperation between them.