Disputes—international: status of Kashmir with India; water-sharing problems with India over the Indus River (Wular Barrage)

Illicit drugs: producer of illicit opium and hashish for the international drug trade (poppy cultivation in 1998—3,030 hectares, a 26% drop from 1997 because of eradication and alternative development); limited center for processing Afghan heroin; key transit area for Southwest Asian heroin moving to Western markets; narcotics still move from Afghanistan into Baluchistan Province