Disputes - international:
thousands of Afghan refugees still reside in Pakistan; isolating
terrain and close ties among Pashtuns in Pakistan make cross-border
activities difficult to control; armed stand-off with India over the
status and sovereignty of Kashmir continues - India objects to
Pakistan ceding lands to China in 1965 boundary agreement that India
believes are part of disputed Kashmir; disputes with India over
Indus River water sharing and the terminus of the Rann of Kutch,
which prevents maritime boundary delimitation
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