It is not on hold. I can safely say that but cannot, for obvious reasons, cite the source.
Zardari has dried up the funding, but our Military R&D is robust enough to keep working.
Scrapping or putting a project on hold is an engineering nightmare. Rather work slowly but surely.
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I wonder how will they test missiles with range longer than the length of our country? Because a missile can fall in international waters, but you have to notify all the vessels of commerce and war. Not an easy thing.