India and China agreed on Friday that they would jointly move forward in identifying a specific project in the area of capacity building in Afghanistan, Foreign Secretary Vijay Gokhale said here on Saturday. The move could upset Pakistan.

During the informal summit between Prime Minister Narendra Modi and Chinese President Xi Jinping in Wuhan in April, the two leaders had agreed to undertake a joint India-China economic project in Afghanistan.

Mr. Modi on Saturday had detailed discussions with Mr. Xi on bilateral and global issues on the sidelines of the Shanghai Cooperation Organisation (SCO) summit here.

Mr. Gokhale said that on Afghanistan there was a brief discussion on the projects. One of the outcomes of the meeting between Prime Minister Modi and President Xi is that India and China have agreed that they will move forward in identifying a specific project initially in the area of capacity building, he said. “But it would be a joint project in Afghanistan so we now have to begin the process of identifying it,” Mr. Gokhale said. This will be a first such project in the war-torn country where China has tacitly backed Pakistan.