Speaking in the Legislative Council, she said such a corridor between the two emerging economic hotspots would help forge a new regional cooperation, energy transformation, trade and transit.
The Indian sub-continent was historically linked to Central Asia through Kashmir and "Taking advantage of its geographical location, Jammu and Kashmir could become a nucleus towards forging a new economic alliance in the region," Mehbooba said while winding up the discussion on the Motion of Thanks on Governor's Address.
"This will create favorable conditions for Jammu and Kashmir to play its natural role of connecting the two emerging economic zones and lift itself out of political and economic fragility," the Chief Minister added.
She said, "Such an arrangement will supplement the China-Pakistan Economic Corridor (CPEC) through this part of Kashmir."
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Mehbooba said not only Srinagar-Muzaffarabad and Poonch- Rawalakote Roads that have already been opened for movement of people and goods, all the traditional road links including Suchetgarh-Sialkote road, Kargil-Skardu road, Bandipora- Gurez-Gilgit road and Nowshera-Mirpur road can be and should be opened for free movement of people and goods in the region.
The economic cooperation across the LoC could be also fostered by setting up joint committees of experts in the areas like education, horticulture, tourism, agriculture, handicrafts, water resources, environment and disaster management, she said.
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