Pakistan claimed on Sunday that Chinese authorities have agreed to invest in the Neelum Jhelum river project in Pakistan administrated Kashmir, which India has been opposing. But there was no confirmation in this respect from the Chinese government, News agencies reported. In fact, there were signs that Pakistani President Asif Ali Zardari's efforts to persuade China to invest in infrastructure project were hampered by rocket attacks on a hotel that endangered the lives of several Chinese engineers in Pakistan. The attacks took place at about the same time he was meeting Chinese leaders in Beijing on July 7. The Pakistani media on Sunday quoted Zardari's press secretary Farhatullah Babar as saying that Chinese president had promised “steady progress in cooperation with Pakistan in energy, telecom sectors, Neelum Jhelum project and Pakistan telecommunication satellite project”. But there was no mention of the Neelum project in the official Chinese media. Babar also indicated that China had postponed plans to invest in upgrading the Karakoram highway and did not agree to laying a rail link at this juncture.
