Imran Khan holds talks with Donald Trump at White House. AFP

Imran's comments come a day after Pakistan accused India of using illegal cluster bombs, killing two civilians and wounding 11, in the disputed Kashmir region. India denied it had used such weapons.

Imran urged India to accept Trump's  offer to mediate on Kashmir .

"President Trump offered to mediate on Kashmir. This is the time to do so as situation deteriorates there and along the LoC (line of control) with new aggressive actions being taken by Indian occupation forces," Imran said on Twitter, referring to the heavily militarised de facto border that divides the two parts of Kashmir between India and Pakistan.

A Pakistani Kashmiri father shows the wounds of his son Mazhar Hussain received when Indian forces fired on Nosehri village. AP

"This has the potential to blow up into a regional crisis," Imran said. He also condemned Indian attack across the LoC on innocent civilians.

India's foreign affairs ministry and the White House did not immediately respond to a request for comment on Imran's remarks.

In July, Trump told reporters that Indian Prime Minister Narendra Modi had asked him during a meeting in Japan if he would like to be a mediator on Kashmir. India denied Modi ever asked for any mediation.

KASHMIR TENSE

Tensions have escalated particularly since Friday, when local Indian officials in Kashmir issued an alert over possible militant attacks.

On Sunday, Kashmir remained on high alert with Indian para-military forces deployed across major towns. One senior local official said a curfew was likely next week.

However, the city police chief in Srinagar, the state's main city, told Reuters he had no knowledge of a curfew.

Hospitals were on alert, with staff told not to leave the city without permission, officials said.

A police officer points to a munition fired by Indian forces that landed in Nosehri village near Muzaffarabad. AP

The local government on Friday said they had intelligence inputs of militant attacks and called off a major Hindu pilgrimage, asking pilgrims and tourists to return home.

Kashmir touts itself as a "Paradise on Earth," with its Dal Lake, famous houseboats and mountains among major attractions.

Britain and Germany have in advisories discouraged their citizens from visiting, but around 160 foreign tourists arrived on Saturday, one official said. Some were not worried.

"Why should we be scared? It is a nice place and people are very helpful," said Molly, a Swiss tourist.

Nevertheless, tourism is bound to suffer as tensions rise.

"All of a sudden tourists left ... I have no work for the last two days. We are up for bad times," said Abdul Rashid Shah, 53, a boatman at the Dal Lake.

Reuters