Indian and Pakistan have fought two wars over the region and their forces regularly trade fire across a 740-km old ceasefire line, known as the Line of Control, the de-facto border.
The prime minister took to Twitter to highlight the plight of Kashmiri people, as he has done since India unilaterally made a decision to annex occupied Kashmir on August 5 and enforce a lockdown.
However, SCL Das, a joint secretary in the Home Ministry, told reporters in India that the two sides could not finalise the agreement because of Islamabad's "persistent inflexibility" on the issue of charging a service fee for the pilgrims.
Since independence from the United Kingdom in 1947 and the murderous partition that followed, Kashmir has been a flashpoint between Pakistan and India.
PM Imran Khan expressed the country's grave concerns over worsening humanitarian crisis in occupied Kashmir amid a month-long stringent curfew and communications blackout.
Prime Minister Imran Khan on Wednesday said the worldwide community had the responsibility to urge India to halt and reverse its illegal actions and aggressive policies and postures in Occupied Kashmir, and Saudi Arabia and the UAE had an important role in that regard.
Ghafoor said Pakistan doesn't want war between the two countries.
Khan, meanwhile, has reached out to world leaders, including U.S. President Donald Trump, to press the Modi government over settling the Kashmir issue.
While for Kashmiris this inevitable influx will mean a major demographic shift and consequent relegation to political insignificance in their own land, the rest of India, particularly the BJP vote bank, can be expected to translate this as a major victory in the goal of making India an exclusively Hindu-dominated state. Most people in India-administered Kashmir oppose Indian rule.
Khan has also described Modi as "facist" and "supremacist", comparing his Hindu nationalist government with Nazi Germany.
Saudi Foreign Minister Adil Al-Jubeir and UAE Minister of Foreign Affairs Sheikh Abdullah bin Zayed bin Sultan Al Nahyan arrived in Islamabad early Wednesday on a daylong visit.
There is no denying that these ideas have significant popular support, a fact that has even led to rendering the Congress party nearly mum on the Kashmir issue despite the wellsprings of its secular existence under Nehru.
Michael Kugelman, a Washington-based expert on South Asian affairs, said India knows if it ends the prolonged lockdown in Kashmir, unrest is all but inevitable.
But he added: "This is the calmest period in the history of Kashmir, if I can say that".
"Despite this, tales of horror are finding their way into the worldwide media".