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916 (2008 est.) Military expenditures: 3% of GDP (2007 est.) Transnational Issues Pakistan Disputes - international: various talks and confidence-building measures cautiously have begun to defuse tensions over Kashmir, particularly since the October 2005 earthquake in the region; Kashmir nevertheless remains the site of the world's largest and most 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); UN Military Observer Group in India and Pakistan (UNMOGIP) has maintained a small group of peacekeepers since 1949; India does not recognize Pakistan's ceding historic Kashmir lands to China in 1964; India and Pakistan have maintained their 2004 cease fire in Kashmir and initiated discussions on defusing the armed stand-off in the Siachen glacier region; Pakistan protests India's fencing the highly militarized Line of Control and construction of the Baglihar Dam on the Chenab River in Jammu and Kashmir, which is part of the larger dispute on water sharing of the Indus River and its tributaries; to defuse tensions and prepare for discussions on a maritime boundary, India and Pakistan seek technical resolution of the disputed boundary in Sir Creek estuary at the mouth of the Rann of Kutch in the Arabian Sea; Pakistani maps continue to show the Junagadh claim in India's Gujarat State; by 2005, Pakistan, with UN assistance, repatriated 2.3 million Afghan refugees leaving slightly more than a million, many of whom remain at their own choosing; Pakistan has proposed and Afghanistan protests construction of a fence and laying of mines along portions of their porous border; Pakistan has sent troops into remote tribal areas to monitor and control the border with Afghanistan and to stem terrorist or other illegal activities Refugees and internally displaced persons: refugees (country of origin): 1,043,984 (Afghanistan) IDPs: undetermined (government strikes on Islamic militants in South Waziristan); 34,000 (October 2005 earthquake; most of those displaced returned to their home villages in the spring of 2006) (2007) Illicit drugs: significant transit area for Afghan drugs, including heroin, opium, morphine, and hashish, bound for Iran, Western markets, the Gulf States, Africa, and Asia; financial crimes related to drug trafficking, terrorism, corruption, and smuggling remain
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