yusheng
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What would be the estimated project cost for this railway line, feasibility and economic benefits for China. It will be passing through occupied Kashmir so India will surely protest such project.
for the time being, the whole project is only seen on discussion, however, the detailed progress is that Chian has exported more than 175 locomobile and passenger train, built a train manufacture in Pakistan (done), and China is helping Pakistan "imporve" her existing railway system(doing), and China is making a good preparation for this line in Chinese side(doing).
this China-Pakistan railway is not a single railway, it is a huge systematical engineering. in the design, there is a "imporved" mult-purpose road accompanying the railway, which is very famous already-existing road connecting Pakistan with China, you know.
as you pointed out here, there are some political hinders, the project is or will be under its way in an undertone.
by the way, China has the similar project to link India by railway and has already began Chinese side building; or i can say when China designs a railway near border, the railway system in closedoor neighbour is taken into consideration too.