Pakistan arrested two Indian High Commission employees in Islamabad over an alleged hit-and-run, in which a man was reportedly critically injured.
The two members of staff were caught trying to flee the scene of the incident in the capital, police said.
The pedestrian reportedly run over by their BMW car early on Monday was taken to hospital.
India summoned Pakistan’s envoy in Delhi in protest at the arrests. The two men were released late on Monday.
Earlier, officials in India said the two members of High Commission staff – named by Islamabad police as Silvades Paul, a driver, and security officer Dawamu Brahamu – had gone missing in Pakistan. They had apparently set off to a meeting but never arrived.
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Because of the coronavirus, few people are out on the roads of the capital, particularly in the upscale neighbourhood where the hit-and-run is alleged to have occurred, making it hard to track down eyewitnesses.
The arrests comes two weeks after India expelled two Pakistani officials accused of spying. The officials worked at the visa section in Pakistan’s High Commission in Delhi.
India accused them officials of trying to obtain information about Indian troop movements – charges they denied.
Since then, India has accused Pakistan of excessive surveillance of Indian diplomats in Islamabad.
The neighbours have a long history of diplomatic spats and often accuse each other of sending spies into their territories.
Monday’s arrests will do nothing to ease tensions between the nuclear powers. India and Pakistan came to the brink of war last year over the disputed territory of Kashmir.