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I agree; this is very strange. I still do not believe that it is smallpox. But something is going on with these two different rumors, one from Pakistan and one from India. Here is some more information on the supposed outbreak in India.

From BodhgayaNews, April 25, 2002:

Outbreak of Smallpox in Barachatti Gaya, 24 April. The Dainik Jagran reports that there is news that hundreds of people are struck by fear due the dreadful outbreak of Smallpox in the village of Amukhapa in the Barachatti block of the district. [Note: Barachatti is just to the south of Bodhgaya. It is also possible that the Hindi word 'cecak' which means smallpox, is being used to refer to a condition like smallpox here, rather than smallpox itself:-PGF]

This also links to the longer article mentioned in post #26 above; here it is:

Outbreak of Smallpox in Barachatti Gaya, 14 April. There is news that hundreds of people are struck by fear due the dreadful outbreak of Smallpox in the village of Amukhapa in the Barachatti block of the district. Ramdev Prasad, the Organiser of the Peoples Committee of the Dobhi block asserting this claim asked for speedy provision of medical aid by the District Administration and Civil Surgeon. Ramdev Prasad, the Organiser of the Peoples Committee of the Dobhi block issued a bulletin in which he said that for the last fortnight in Amukhupa village in the Cataluka Panchayat the outbreak of small pox had spread. Smallpox was also visible in villages surrounding the area. Due to the outbreak of Smallpox hundreds of people were struck by fear but the health department had so far taken no notice of it. Mr Prasad asked for the provision of appropriate medical care to stop the Smallpox from the local officials and District Administration and Civil Surgeon.

Barachatti (or Barachati) is in Bihar, in northeastern India. Here is a map showing Bihar:

Here are two maps showing Barachati in Bihar (look in the south central area):