Disputes - international:
Kashmir remains the world's largest and most highly militarized territorial dispute with portions under the de facto administration of China (Aksai Chin), India (Jammu and Kashmir), and Pakistan (Azad Kashmir, and Northern Areas), but recent discussions and confidence-building measures among the parties are beginning to defuse tensions; India does not recognize Pakistan's ceding lands to China in 1965 boundary agreement; disputes with Pakistan over Indus River water sharing and the terminus of the Sir Creek Estuary at the mouth of the Rann of Kutch, which prevents maritime boundary delimitation; Pakistani maps continue to show Junagadh claim in India's Gujarat State; despite largely successful UN efforts at voluntary repatriation, thousands of Afghan refugees continue to reside in Pakistan; Pakistan has sent troops into remote tribal areas to control the border with Afghanistan to stem organized terrorist and other illegal cross-border activities; regular meetings with Afghanistani and coalition allies aim to resolve periodic claims of boundary encroachments
Illicit drugs:
opium poppy cultivation practically eliminated; key transit point for Southwest Asian heroin bound for Western markets; Afghan narcotics continue to transit Federally Administered Tribal Areas, Balochistan Province, and Karachi; financial crimes related to drug trafficking, terrorism, corruption, and smuggling remain problems
