India and Pakistani President Mamnoon Hussain signed a joint statement on the “unprecedented” agreement between the two countries on the construction of an inter-provincial highway, the Indian Press Trust of India reported on Wednesday.
Under the agreement, India will invest up to $500 million in Pakistan’s development of a road linking the eastern and western provinces of Balochistan and Sindh, while Pakistan will receive up to US$400 million in return.
Pakistan will also take the reins of its petroleum industry.
The agreement was signed between President Hussain and Prime Minister Nawaz Sharif, according to the statement.
The Indian government will work closely with the government of Pakistan to ensure that the investment is beneficial to both countries, said the statement, according with a summary of the agreement.
Pakistan has been a key partner in the economic corridor that has allowed India to develop the eastern border of the Arabian Sea and connect its oil-rich east coast to the world’s second-largest oil market.
Pakistan, which has about 2 million km of coastline, is a strategic transit country for global oil supplies and is also home to some of the world ‘s largest gas reserves.