Here are the key statements in the US-Pakistan joint statement (in order of their appearance in the statement) that could raise red flags:
1. Hydroelectric projects in PoK/Gilgit-Baltistan
President Obama expressed support for Pakistan’s efforts to secure funding for the Diamer Bhasha and Dasu dams to help meet Pakistan’s energy and water needs.
India has opposed the construction of hydro-electric projects in the disputed region of Kashmir that includes PoK and Gilgit-Baltistan. Most recently, External Affairs Minister Sushma Swaraj had called the China-Pakistan Economic Corridor (CPEC) unacceptable because it includes these projects, while India had told the UNGA that “India’s reservations about the proposed China-Pakistan Economic Corridor stem from the fact that it passes through Indian territory illegally occupied by Pakistan for many years.”
In recent years, the 4,500 mW Diamer Bhasha dam (DBD) project, that the Pakistan government says will halve its electricity shortfall when constructed, had come to a standstill over funding. In 2013, prospective investors - the ADB, China and Russia - had asked Pakistan to obtain an NOC (No objection certificate) from India before they could proceed on loans. Even after the announcement of the China-Pakistan Economic Corridor by President Xi Jinping for projects including dams in PoK in April 2015, China has shown a preference for the $1.6 billion Karot project, rather than DBD, which would now cost an estimated $14 billion. It is significant that the US wants to play ‘White Knight’ on these two dams, and for India, the construction of major projects like these endorsed by the US would be a blow to its claim on PoK. Earlier this month, reports suggested India had protested over a USAID event aimed raising funding for DBD, where US firm Mott McDonald has been contracted to perform a technical engineering review
US-Pakistan joint statement: what India should watch out for - The Hindu