The Chinese government on Friday signed a $525-million deal to help Pakistan build two highways in the disputed Pakistan-occupied Kashmir (PoK) region.
China has agreed to build a 165-km-long highway between Jaglot and Skardu, and a 135-km highway between Thakot and Sazin in the disputed Gilgit-Baltistan region near Pakistan's border with China, according to a Memorandum of Understanding signed here during the ongoing visit of President Asif Ali Zardari.
The official Associated Press of Pakistan reported that the projects would cost Pakistan Rs.45 billion, or $525 million. China has agreed to bear 85 per cent of the cost.
Rail link plans
During Mr. Zardari's visit, the two countries have also agreed to accelerate plans to build a rail line from China's far western Xinjiang autonomous region to Havelian, also through the Gilgit-Baltistan region. The plans have been discussed for almost a decade, but have made little headway since 2004, when a pre-feasibility study was conducted.
Asked about the progress in discussions over the rail link, Mr. Zardari told China's Xinhua news agency that “the concept had been accepted,” but did not give any further detail.
India has voiced concerns over Chinese support to projects in PoK. Indian officials say that by carrying out projects, China is affirming its support to Pakistani claims over land it views as disputed.
China has opposed projects funded by the Asian Development Bank in Arunachal Pradesh, arguing that the ADB was legitimising India's claims to the State, which China considers a disputed territory.
In April, during External Affairs Minister S.M. Krishna's visit to Beijing, Indian officials reiterated their concerns over Chinese infrastructure projects in PoK in talks with Foreign Minister Yang Jiechi.
Foreign Secretary Nirupama Rao told journalists then that India had given China “the full picture” of its opposition to the projects.
Ms. Rao said the Chinese position was that “the issue of outstanding differences that exist on Jammu and Kashmir between India and Pakistan should be resolved between the two countries.” Chinese officials argued that their projects in PoK were “without prejudice” to this position.
The Chinese officials also said they understood the Indian concerns, but now appear to have left their policy unchanged.
