ISLAMABAD: The India-Pakistan dispute over Kashmir is a matter of concern, according to a United Nations (UN) report, claiming that the China-Pakistan Economic Corridor (CPEC) might create geopolitical tensions with India and ignite political instability.

The report released by the UN’s Economic and Social Commission for Asia and the Pacific (Escap) on Tuesday feared that Afghanistan’s political instability could limit the potential benefits of transit corridors to population centres near Kabul or Kandahar.

The report, ‘The Belt and Road Initiative and the Role of Escap’ was prepared at China’s request and covers the six economic corridors spanning Asia, Europe and Africa under the umbrella of the Belt and Road Initiative (BRI).

CPEC holds the promise of closer trade, investment and energy cooperation between the two countries, as it creates alternative maritime trade routes for China and its trading partners, it said. According to the report, CPEC could serve as the “driver for trade and economic integration” between China, Pakistan, Iran, India, Afghanistan and the Central Asian states.