China has signed a deal with Pakistan to build two highways in the Pakistan-occupied Kashmir (PoK) region.

The projects involve constructing a 165km-long highway between Jaglot and Skardu, and a 135km Thakot-Sazin road near Pakistan’s border with China.

The two highway works are estimated to cost Rs45bn ($525m), according to the Associated Press of Pakistan.

About 85% of the project cost is expected to be financed by China and the remaining 15% by Pakistan.