Interior Minister Rehman Malik on Tuesday ordered the release of all Indian fishermen incarcerated in Pakistani jails, Radio Pakistan reported.
Across the border, four Pakistanis, including a woman, were released from jail and have now arrived in Lahore.
Meanwhile, Pakistan had arrested 27 Indian fishermen on Monday for illegally straying into its territorial waters, officials said.
The arrests come after a ceasefire took hold last week in Kashmir, following five deadly cross-border killings that threatened to unravel a fragile peace process.
Pakistan’s Maritime Security Agency (MSA) arrested the Indian fishermen and seized six boats, alleging they were 40 nautical miles inside Pakistani waters.