Under this agreement Pakistan retained all territories that were under its control in areas contiguous to China’s Xinjiang region. In addition, Pakistan also obtained 1,942 square kilometres of territory under the effective control of the Chinese.
This additional area constitutes the Shimshal region, north of the main watershed dividing Pakistan and China. Here the Shimshali inhabitants of north Hunza had historically enjoyed grazing rights, and had previously established a post without Chinese objection. Apart from this projection, the boundary followed the main watershed between the Tarim river system (tributaries of the Tashkurgan river) and the Indus river system (tributaries of the Hunza river).