Pakistan Government said that it will deploy cross border Optical Fibre Cable (OFC) system at a cost of Pakistani Rupees (PKR) 3.7 billion between Pakistan and China for security of information. A media report said that the need of this cross-country fiber optic cable grew after security concerns from Pakistan and China, who fear the possibility of India monitoring the communication activities, through already active undersea cables. The project was deliberated at a recent meeting of the Executive Committee of the National Economic Council (ECNEC) under the chairmanship Finance Minister Dr. Abdul Hafeez Shakih.

The project consists of laying 820 km of Optical Fibre Cable (OFC) along the Karakaram Highway, from Rawalpindi to Khunjrab Pass (Chinese border via Mansehra, Chilas, Danyore (Gligit), Karimabad and Sust). At present, Pakistan’s international connectivity with the world is through undersea cables SEA-ME-WE 3&4 and IMEWE, and Pakistan is connected through spurs only.

Successful implementation of the project would provide Pakistan with a direct telecom access to China and the Central Asian States. The project is expected to generate revenue, approximately PKR 1.5 billion in the first three years and, in the fourth year, the financial dividends are likely to grow. The project would be funded within Public Sector Development Program (PSDP) and out of a Chinese soft loan. The project also involves PKR 3.2 billion foreign exchange component (FEC).