"India-Pakistan: Some Quiet On The Northern Front"

From StrategyPage, July 7:

China has become the ultimate fiscal lifeline for Pakistan. Decades of deficits, growing corruption, excessive defense spending and military domination have left Pakistan broke and few willing to give or lend enough cash to keep Pakistan solvent. A recent example of how this works was seen when despite the economic recession and a public debt crisis (no one will lend to Pakistan anymore), the Pakistani defense budget was increased twelve percent for 2020, with annual spending now $7.85 billion. Spending on dealing with covid19 has averaged about $100 million a month and by the end of the year military spending will be at least five times what was spent on covid19. The India defense budget is also up (13.6 percent more) in 2020 to $66 billion.

The only economic relief available to Pakistan is China and its CPEC (China-Pakistan Economic corridor). CPEC is a vast Chinese investment and construction effort that depends on vigorous support of the Pakistani military to succeed. China needs the Pakistani military to keep Islamic terrorists and tribal separatists from attacking Chinese construction projects. Pakistan also helps China by keeping Indian forces occupied in Kashmir and the northwest Indian portion of the Pakistani border.

Northwest India (Ladakh State) is the current hot spot because India has been building roads to the border and threatening to take back the portion of Kashmir Pakistan illegally, according to the agreement that established the India-Pakistan border after the British left in 1947, seized from India. Pakistan signed that agreement but had second thoughts as it was being implemented. Pakistan urged Pakistani Pushtun tribes in the area to “liberate” Kashmir from the Hindus and managed to grab about half of the disputed area. This dispute has remained unresolved ever since and led to several wars with India. Pakistan always lost but India never sent troops into Pakistan-occupied Kashmir. The current Indian leader is openly questioning the wisdom of that policy.

India controlling all of Kashmir is a major economic threat to China, which has invested over $10 billion to build a highway and rail line from China to the Pakistani coast and it goes through Pakistani occupied Kashmir. This link is part of the Chinese OBOR/BRI (belt and road project) which aims to revive the ancient Silk Road that for thousands of years was the main economic link between East Asia and the rest of Eurasia. The Pakistani portion is called CPEC and has costing China at least $62 billion (so far). Indian threats to the Kashmir road-rail link are minor compared to the problems China is having with Islamic terrorist and tribal violence against CPEC projects as well as the high levels of corruption in Pakistan which are also damaging CPEC projects. This is driving up costs while lowering quality and slowing progress. But China also claims ownership of much Indian territory so helping Pakistani keep what they have grabbed is considered something of professional courtesy. At the same time, the Pakistani military has gained an ally they cannot abandon or say no to.

In June China revived the border war over Pangong Lake, which is largely in Tibet and patrolled by a small Chinese naval force. This is the longest lake in Asia and part of the 134-kilometer long lake extends 45 kilometers into the Indian Ladakh region. China is using its usual “sneak, grab and stay” tactics to slowly move the border into territory long occupied by India. The portion of the lake shore in dispute has no native population. The only people who visit the area are soldiers from India or China.....

....MUCH MORE