i really doubt the strategic importance of Kargil, damn that areas is always covered in snow, no one can live there, but sstill both the army were eager to capture/re-capture it. As far i understand IAF pounded PAK ARMY and was successful in cutting their supplies within the Kargil sector, but it wasn't the case, because getting supplies back was not problem for the Army as they already had the Route. i believe the reason why Pakistan didn't response was the American factor and may be we didn't wanted to go in a all out war with India which we cant even win. The main reason for this operation might be to tell India that how much capable is Pakistan and India cant do any thing about it, but the Indians reacted very well and there were no signs of PAF or else it wont be a easy task for IAF without the PAF they were like hunting chickens.