Rising militancy in Pakistan puts China’s billion-dollar investment under huge strain

Washington, July 27 (AHN) The recent surge in militant attacks in Pakistan has heightened concerns for China, which has invested billions of dollars in the South Asian nation since 2015.

In recent years, the Baloch Liberation Army (BLA) has increasingly targeted Chinese interests, alleging that Beijing is exploiting Balochistan's natural resources, a report has stated.

"For China, Pakistan's Balochistan represents a massive investment that's a crucial part of its touted Belt and Road Initiative (BRI). Its flagship project, the China–Pakistan Economic Corridor (CPEC), has garnered some USD 65 billion in funding from Beijing for everything from infrastructure development to energy generation and mineral extraction," according to a report in US-based media outlet Radio Free Europe/Radio Liberty (RFE/RL).

"But the resource-rich region, which borders Afghanistan and Iran, is also home to a long-simmering insurgency by ethnic Baluch militants marked by decades of attacks on gas pipelines, electricity towers, and railways. And in recent years, militant violence in Balochistan has seen a sharp increase, with Chinese projects a frequent target -- putting a strain on relations between the traditionally strong allies and the future of investments in the country," it added.

The report noted that the BLA launched over 100 attacks in the first six months of this year in Balochistan, with foreign investment projects, Pakistani police, military and paramilitary personnel among the primary targets.

Analysts reckon that the unrest is largely rooted in longstanding local grievances.

Calling for an independent Balochistan, Baloch militant groups accused Pakistan of exploiting the resource-rich province. Despite its vast territory and strategic position, with access to the Strait of Hormuz through Gwadar Port and land borders with Iran and Afghanistan, Balochistan remains Pakistan's most underdeveloped and economically deprived province, the report mentioned.

Analysts said that the persistent security threats, political instability, bureaucratic delays, and economic obstacles have delayed the implementation of several projects under CPEC.

"CPEC has lost much of its initial momentum," RFE/RL quoted Khalid Sultan, an Islamabad-based analyst, as saying. He noted that the prevailing security situation makes it difficult to attract new foreign investments in Pakistan.

"If the current security environment persists, China is likely to adopt a more cautious approach by slowing the pace of new investments, reassessing existing projects, and demanding stronger security guarantees before committing additional resources," Sultan added.

The report highlighted that the issue of security and terrorism continues to feature prominently in discussions between the top Chinese and Pakistani officials amid growing militancy in Pakistan.

Political scientist Ayesha Siddiqa, an author and senior fellow at King's College London, said that the security threat is unlikely to diminish in the near future, and could in fact escalate.

"Given the current global geopolitical conditions, this threat is bound to increase," she told RFE/RL, citing the rise in militant violence in Pakistan and the country's indirect involvement in the Middle East.

"There are multiple forces which are responsible for a continuous turmoil in the region and conditions are not going to be favourable," she added.