Pak seeks US aid for taking up project in PoK

India, according to the sources, is likely to take up the issue with the US and re-assert its stand that the PoK was under “illegal occupation” of Pakistan and any infrastructure project in the region by Pakistan too would have no legal basis at all.

Pakistan has sought fund from the United States Agency for International Development for the Diamer Bhasha dam, which has been envisaged to come up on Indus River in Gilgit Baltistan region of PoK. The Water and Power Development Agency of the Pakistan Government sent a proposal to the USAID, asking the latter to partially finance the project.

The US Embassy in Islamabad on Tuesday confirmed that Diamer Bhasha dam was one of the energy projects for which Pakistan had sought assistance from the USAID.

“The Government of Pakistan sought USAID assistance for a number of energy projects, including Diamer Bhasha. We are considering various energy projects for potential funding, but haven’t made the decision yet,” Alberto Rodriguez, press attaché of the US Embassy in Islamabad, wrote to Deccan Herald in response to a query. The Diamer Bhasha project would consist of a huge reservoir for storage of 6.3 Million Acre Feet of water and two power-stations with total installed generation capacity of 4500 MW.

The World Bank had earlier declined from financing the project. The agency had cited New Delhi’s objections and controversial status of Gilgit-Baltistan (northernmost part of the PoK) as reasons for turning down the proposal. The Asian Development Bank too had been reluctant to get involved with the project. 

Islamabad, however, continued to seek funds from the international agencies and it now hopes that even a token assistance by the USAID would prompt the World Bank and ADB review their earlier decisions to stay away from the project.

Pakistan’s move to seek US fund for the Diamer Bhasha project in PoK came at a time, when New Delhi is concerned over reports on increasing Chinese presence on that side of the Line of Control.

New Delhi maintains that the entire State of Jammu and Kashmir, including the PoK, is an integral part of India and any project undertaken by Pakistan – either on its own or with foreign assistance – in the territory under its illegal occupation “has no legal basis and is completely unacceptable.” India has also been protesting Chinese involvement in infrastructure and other projects in PoK.