M PRA

Munich Personal RePEc Archive

Baloch Insurgency and its impact on

CPEC

Sabahat jaleel and Nazia Bibi

University of Engineering and technology, Taxila, Pakistan Institute

of Development Economics, Islamabad

18 July 2017

Online at https://mpra.ub.uni-muenchen.de/90135/
MPRA Paper No. 90135, posted 24 November 2018 17:28 UTC
 Baloch Insurgency and its impact on CPEC
Sabahat Jaleel (Lecturer UET Taxila) & Nazia Bibi (Assistant Professor PIDE)

Abstract
CPEC, a significant development project, aims to connect Pakistan and China through
highways, oil and gas pipelines, railways and an optical fiber link all the way from Gwadar to
Xinjiang. Being the biggest venture in the bilateral ties of China-Pakistan, the project faces
certain undermining factors. The research explores the lingering security concerns that surfaced
due to the destabilizing and separatist efforts of the Baloch Liberation Army (BLA) and Baloch
Liberation Front (BLF). It also elaborates the Chinese concerns and Pakistan efforts to address
these concerns while assuming the hypothesis that a secure and stable environment is necessary
to reap the fruits of this mega project. The work also answers some innovative questions thus
helpful for the students of Economics, Pakistan history, politics, Internal Relations, Foreign
Policy and for those who intend to read about China-Pakistan and their joint ventures as CPEC.
The main objective of the study to empirically analyses the response of Baloch community.
Graphical and empirical methods have been adopted to describe and analyze the facts and
figures related to the topic. The results clearly indicate that CPEC will face resistance from
people of Balochistan, which will negatively affect the prospects of CPEC. The results also
indicate that social issues like migration should be tackle to increase the benefits. Furthermore,
people think that such project is important for growth and development of the country.

Key words: CPEC, BLA, BLF, Gwadar, Security.

China Pakistan Economic Corridor and Internal Security Challenges

“You will encounter many distractions and many temptations to put your goal aside. But if you

hang in there, always following your vision, I have no doubt you will succeed.”

(Larry Flynt)

Nations pursue their national interests in a number of ways. The most important amongst them is

bilateral ties and bilateral trade and investment agreements. Pakistan and China are “all-

weather” 1 allies having different bilateral projects for the mutual development and progress.

Both countries signed first bilateral trade agreement at 1963 during that time their

1
Rosheen Kabraji, “The China-Pakistan Alliance: Rhetoric and Limitations”, Asia Programme Paper ASP PP 2012/01
(Chatham House: December, 2012) 4.

1
relationshipstrengthen and based on India ‘centric’.2 Currently, the development of Gwadar port

is significant development between China-Pakistan relations. It has attracted the global

community and perceived as an initiative for regional economic development and economic

integration. Gwadar port is a financial and business port where all the regional and global nations

can take benefits. The administration of China has refused the propaganda that this port would be

utilized for military purposes. It would be fully utilized and operationalized for the economic and

trade activities.3

Larry Flynt’s quote perfectly fits over the mutual agreement “CPEC”, between China and

Pakistan. There are number of distractions and temptations to halt the work on CPEC from local

organizations such as Baloch Liberation Army (BLA) and Baloch Liberation Front (BLF)

separatist agenda in addition to the external disaffection from Iran, Afghanistan and India.

Pakistan and China are committed to stand against the storm and pursuing this mega project. The

strict hang with strong vision over the CPEC, both the countries would succeed in making

economic progress and prosperity.4

CPEC is at the center of diplomacy for last many years. It is a project offering many benefits to

both China and Pakistan. For China, it has two essential advantages after the completion of the

Economic Corridor and Gwadar Port. Firstly, it would link the western China with Middle East

by providing the shortest route to China. In this way, utilizing the Economic Corridor, China can

easily access Middle Eastern Markets. It is advantageous for China’s western region particularly

2
Andrew Small, The China-Pakistan Axis: Asia’s New Geopolitics, (New York: Oxford University Press, 2015), 48
3
Zahid Anwar, “Gwadar Deep Sea Port’s Emergence as Regional Trade and Transportation Hub: Prospects and
Problems”, Journal of Political Studies, Vol. 1, Issue 2, 98.
4
Massarrat Abid & Ayesha Ashfaq, “CPEC: Challenges and Opportunities for Pakistan”, Pakistan Vision, Vol. 16,
No.2, 155.

2
Xinjiang region on the grounds because it is almost 4000 km away from main coastal area of

China.5

Secondly, the proposed Gwadar-Xinjiang energy pipeline would provide secure and less

expensive energy supply to China. Currently, Chinese transshipments come through the Strait of

Malacca which has many economic and security challenges. Gwadar offer various financial

opportunities to China and its geo-strategic location can give a position where China can,

without any hurdle, secure its interests. It gives the capacity to ensure more security of the

Chinese vessels in Arabian Sea.6

What is CPEC?

China-Pakistan Economic Corridor (CPEC) is a significant development project. Firstly, this

project was proposed by Chinese Premier Li Keqiang during his visit to Pakistan in May 2013

and finally approved during Prime Minister Nawaz Sharif visit to Beijing on July 5, 2013.7 The

main purpose of this mega project is to connect Gwadar Port; which located in south-western

part of Pakistan; to China’s north-western region of Xinjiang. It has taking into account 18

different projects, for example, development of road, railroads, energy, industrial zones and

Gwadar port related projects and these would be finished within the next five years. The

infrastructure and energy related ventures have enormous significance for Pakistan’s economy.

CPEC is a landmark in the mutual relationship of China-Pakistan. Its total cost is estimated about

5
Cherng-shin Ouyang, “The Sino-Pak Trade and Energy Corridor- An Assessment-”, The 8th Pan- European
Conference on International Relations, Institute of International Relations, Warsaw Economic University Poland,
(18-21 September,2013)
6
Saima Perveen & Jehanzeb Khalil, “Gwadar Kashgar Economic Corridor: Challenges and Imperatives for Pakistan
and China”, Journal of Political Studies, Vol.22, Issue-2, 2015, 356.
7
Ahmad Ahmadani, “China-Pakistan Economic Corridor: PM approves over $ 38bn projects”, Daily Times, 09 May,
2014.

3
US $46 billion, including US $34 billion for energy infrastructure. Pakistan is experiencing an

extreme energy crisis which has hampered the economy. The current Govt. understood that

without solving the energy crisis, the nation cannot develop. 8 This project will play a significant

role to change the global economic world order by benefitting the people of Central Asia, South

Asia and China.9

Geography of China-Pakistan Economic Corridor

Geographically, CPEC starts from Gwadar port, located at the mouth of the Persian Gulf and

closer to the Strait of Hormuz, which is considers as a main route for oil shipment. The route

ends in Western Chinese province of Xinjiang.10

8
Chinese President Xi is making a $ 46 billion move in Pakistan (Business Insider, April 20, 2015)
9
John Calabrese, “Balancing on ‘ the Fulcrum of Asia’: China’s Pakistan Strategy” Indian Journal of Asian Affairs, Vol
27/28. No. 1/2 (2014-2015),1-20.
10
Hasan Yaser Malik, “Strategic Importance of Gwadar Port”, Journal of Political Studies, Vol. 19, Issue-2, 2012, 57.

4
Project Details

The economic corridor would be comprised of around 50 bridges, Karachi-Lahore motorway

including three bridges to be built over River Sutlej, Ravi and Indus. It would improve the

economic condition or growth and infrastructure in both the countries.11

Effects on the Region

CPEC will change the futuristic economic world order. During Chinese President Xi Jinping visit

to India and Pakistan, he announced to invest $ 20 billion in India over next five years, while in

the case of Pakistan over $ 46 billion through this project. India has showed disaffection with

growing China-Pakistan economic, diplomatic and military ties.12 China has also enhanced its

trade with Southeast Asian countries under its Asia Pacific policy. China is investing in

Bangladesh along with Pakistan as a part of its “String of Pearls” strategy.13

Security Concerns to CPEC

CPEC is considered the key project to boost the economies of China-Pakistan but it faces certain

security threats obstructing its development. In this way, the major security hurdles comes from

the militant organizations such as Balochistan Liberation Army (BLA), Balochistan Liberation
14
Front (BLF), Tehreek-e-Taliban Pakistan (TTP), and Lashkar-e-Jhangvi (LeJ). These

11
Shakeel Ahmad Ramay, “China Pakistan Economic Corridor: A Chinese Dream Being Materialized Through
Pakistan” SPDI Report, 4.
12
D. Bhattacharjee,” China Pakistan Economic Corridor”, SSRN Electronic Journal, 2015.
13
F. Godement, “China’s Neighbourhood Policy”, European Council on Foreign Relations, Asia Centre, China
Analysis.
14
Duchatel, “The Terrorist Risk”, p.561; ‘Security Council Al-Qaida and Taliban Sanctions Committee adds names of
four individuals to consolidated list, amends entries of three entities’, United Nations, 10 December 2008.
http://www.un.org/News/Press/docs//2008/sc9527.doc.htm; Narayan Lakshman,‘China blocked U.N. sanctions
against terror group at Pakistan's behest’, The Hindu, 7 December 2010,
http://www.thehindu.com/news/international/article936090.ece.

5
organizations are on front line to hamper the project pace with the help of physical destruction

and attack on Chinese labor force as Chinese workers have been killed and kidnapped from

different sites. Due to this reason, China has shown concerns over the internal security condition

of Pakistan.

Another major threat to the economic corridor is political issues. Chinese President Xi Jinping

had planned to visit Pakistan in September 2014 but due to political situation this visit was

canceled. In this way, another controversy was created by some nationalist political parties

related to route changing.15 Although Prime Minister of Pakistan organized all parties conference

and clear the three major routes details like

I- Western route originating from Gwadar will pass through Turbat, Panjgur, Naag,

Basima, Sohrab, Kalat, Quetta, QilaSaifullah, Zhob, DIK, Mianwali, Hasanabdal and

Islamabad.

II- Central route will originate from Gwadar, Quetta, and reach DIK via Basima,

Khuzdar, Sukkar, Rajanpur, Liya, Muzaffargarh, Bhakkar, DIK.

III- Eastern route will include Gwadar, Basima, Khuzdar, Sukkar, RYK, Bwp, Multan,

Lahore/Fsbd, Isbd, Mansehra.16

In the same line, India; through its secret agency RAW and its involvement in Balochistan; is

trying to create security threats and uncertain situation to affect the project negatively.17

15
Ibid.,“CPEC: Challenges and Opportunities for Pakistan”, 151.
16
“China-Pakistan Economic Corridor? The Route Controversy”, Chief Minister Policy Reform Unit Govt. of
Balochistan. 2015, 3.
17
Safdar Sial,” The China-Pakistan Economic Corridor: An Assessment of Potential Threats and Constraints”,
Conflict and Peace Studies, Vol.6, No.2, 2014. 24.

6
Similarly, Balochistan instability is undermining the growth of project. The involvement of

Baloch militant’s organization in terrorist activities for the fulfillment of their interests such as

separatism or demanding independent state are adding fuel to already dismal state of affairs.

Nationalist Baloch views that it would result in mass migration in Gwadar would threaten the

existence of Baloch as it could turn the Baloch majority into minority it will also threaten Baloch

identity.18

18
http://www.ipripak.org/cpec-and-the-baluchistan factor/#sthash.05TR0DCE.dpuf

7
Furthermore, ethno-sectarian is another important reason insurgency in Balochistan. Muhammad

Ali Talpur in an article ‘A few questions answered’ wrote: “The China Pakistan Economic

Corridor is the center of interest for China, Pakistan and, naturally the world, as all perceive it

according to the strategic and economic advantages and disadvantages it holds for them,

whatever importance it may hold for others, it is extremely important for the Baloch whose lives

it will destroy in the name of development.” 19 Many separatist leaders of the Balochistan

province are opposing the China-Pakistan Economic Corridor (CPEC). In this way, Brahamdagh

Bugti, the leader of the outlawed Baloch Republican Party (BRP), criticized the CPEC and

Gwadar port projects and called for an UN sponsored referendum in Balochistan to decide its

future. Similarly, the BLF, head Dr. Allah Nazar Baloch, is mainly concentrated in the southern

coastal Makran belt though it functions across Balochistan. The group based on dissatisfied

middle-class and lower middle-class Baloch youths. The Lashkar-e-Balochistan (LB) led by

Javed Mengal is focused in south-western districts of Balochistan (Panjgur, Gwadar, Kech,

particularly Turbat) and also Khuzdar. It is supposed that the group was involved in terrorist

attacks on the Chinese Consulate in Karachi and a blast at the Lahore Railway Station in August

2012. (PIPS, 2013). The Baloch Liberation Army (BLA) and Baloch Republican Army (BRA)

are also active in parts of Gwadar and its neighboring districts particularly Panjgur and Kech and

their main purpose to create hurdles in the development of CPEC.20

The study is concerned to check the intensity and nature of resistance from Balochistan

Liberation Army (BLA) and Balochistan Liberation Front (BLF) to CPEC. To accomplish this

task, we got response from local people of Balochistan through questionnaire. The main concern

19
Waqar Ahmad, “Balochistan, CPEC- another View”, The Daily Time, Islamabad (14 July 2015).
20
www.economist.com/news/asia/21653657-conflictbalochistan-must-be-resolved-trade-corridor-between-
pakistan-and-china-bring.

8
was to check people perception that whether CPEC will face resistance from local people of

Balochistan, whether security concerns are there? CPEC will have implications for Pakistan

economy and security situation it will face. In addition, the survey tried to get people opinion

about the Iranian and India urge to participate in the project and implications of CPEC for India.

Variables and Estimation Techniques

We have use Likert scale to know about people’s response to different questions, where 5

represent if they are highly agreed to our statement and 1 show high disagreement.

The study uses two different methods to find the crux of study, firstly we analyses the whole

scenario by getting responses of people. Firstly, graphically show that what people perceive

about CPEC at different grounds. Secondly we analyses the results empirically through Logit

model. We consider dependent variable as dichotomous where the response ‘yi’ is binary,

assuming only two values that for convenience we code as one or zero. For example, we could

define

𝑦𝑖 = 1, if people think that CPEC have positive implications

0, otherwise

Where 𝑦𝑖 is a random variable that can take the value of zero or one.

9
Binary data can be estimated through Linear probability model (LPM) and this model is usually

estimated by OLS. One problem with this model is that the probability on the left-hand- Side

(dependent variable) has to be between zero and one, but the linear predictor on the right-hand-

side (independent variables) can take any real value, so there is no guarantee that the predicted

values will be in the correct range unless complex restrictions are imposed on the coefficients.

A simple solution to this problem is to transform the probability to remove the range restrictions,

and model the transformation as a linear function of the covariates. First, we move from the

probability to the odds

Odds = ∏𝑖 / (1- ∏𝑖 )

And is defined as the ratio of the probability to its compliment, or the ratio of favorable to

unfavorable cases.

Second, we take the log of odds which has the effect of removing the floor restriction. Now the

probability is between positive infinity to negative infinity. So, the Logit model is good for

estimation of a binary data, the coefficients we get from this model is defined as probabilities.

The logistic function was invented in the 19th century for the description of the growth of

populations and the course of autocatalytic chemical reactions, or chain reactions.

The basic model we are going to estimate is:

CPEC1 = f (Sec1, Sec2, sec3, sec4, res2, ind4, ind5, pak1, soc1, iran1, iran2)

And

10
CPEC2 = f (sec4, res1, res2, ind1, ind4, ind5, pak1, pak2, soc1, trans)

We can estimate following models:

CPEC1 = 𝛼0 + 𝛼1 sec1+ 𝛼2 sec2 + 𝛼3 sec3 + 𝛼4 sec4 + 𝛼5 res2 + 𝛼6 ind4 + 𝛼7 ind5 + 𝛼8 soc1+

𝛼9 iran1 + 𝛼10 iran2 + ε

CPEC = 𝛽0 + 𝛽1sec4+ 𝛽2 res1 + 𝛽3res2 + 𝛽4 ind1 + 𝛽5 ind4 + 𝛽6 ind5 + 𝛽7 pak1 + 𝛽8 pak2+ 𝛽9

soc1 + 𝛽10 trans + u

Where

CPEC1 = whether CPEC have positive implications for people of Balochistan; and

CPEC = Baloch people will play positive role in development of CPEC.

These are dependent variables, which can take values 0 or 1. When the value is 0, it implies that

if people think that it has no positive implications; whereas 1 if people think that it has positive

implications so it should be carried out.

We also use another question to analyses that whether people of Balochistan are willing for

CPEC project or not by asking them whether they will play a positive role in CPEC or not?

Again we collect their response through yes or no, which shows their response about the project.

We also use it as dependent variable and carry out all the analysis through it to check the

robustness of results. The independent variables are measured through likert scale which ranges

from 1 to 5 where 5 shows strongly agreed while 1 show strongly disagreed. The definition of

variables is as under:

11
Sec1= CPEC faces security concerns.

Sec2=CPEC affects Pakistan’s internal security.

Sec3=The proposed CPEC will be affected by Pakistan’s internal security.

Sec4=Current security situation of Balochistan is suitable for CPEC.

Res1=CPEC faces resistance from BLA and BLF.

Res2=Baloch nationalists are against the development of CPEC.

Ind1=India is providing financial and arms assistance to BLA and BLF.

Ind2=Raw is threat to Balochistan security and CPEC.

Ind3=India is involved in any terrorist activities in Balochistan.

Ind4=India should response negative to China economic corridor.

Ind5=CPEC will have implications for Indian economy.

Pak1=CPEC have positive impact on Pakistan economy.

Pak2=CPEC security issues implement negative impact on growth.

Soc1=There is loss for Baloch people if urban migration occurs in Gwadar.

Soc2=Due to this migration, Baloch community will become the minority in their native land.

Trans= Western route is secure for transportation

Iran1=Iran has concerns over CPEC development and security in Balochistan.

Iran2=Iran will influence the CPEC in Balochistan.

12
The graphical analysis of response of people (in average for each separate section as earlier

discussed) is as follow:
Fig1: Security
1 2
0% 3%
Around 56% people respond that CPEC affects and can be
5
affected through security issues in the region while 41 % 11%
3
are of the opinion that they have no idea yet that whether it 41%

will cause or affected by security issues. (See Fig1) 4

45%

It is expected that CPEC project will face resistance from

BLA, BLF and Nationalist. In fig 1, the response is shown

Fig2: CPEC Faces
Resistance
that around 54% of people of Baluchistan feel that CPEC 1
3%
will face resistance from BLA, BLF and Nationalist. In fig
5 2
2 and 3, we analyzed the resistance from BLA, BLF and 14% 7%

Nationalists separately. 3
36%
4
40%
The conclusion made above is again clear from figure 2

that 61% strongly agree with the statement that CPEC face

severe challenges Fig3: CPEC Faces Fig 4: CPEC Faces

Resistance From BLA and Resistence From
from BLA and BLF in BLF Nationalist
1
terms of security (Fig 6% 2
8%
5 5 1
3). While 42% people 16% 12% 12%
2
are of the opinion that 3 16%
4
25% 30%
nationalist are hurdle 4 3
45% 30%
in the way of CPEC in

13
terms of security (Fig 4).

We also got response on whether India is providing

Fig 5: India hindrance in
financial assistance to create security threats to create CPEC
1
hindrance in CPEC. The response of people is shown in 4%

4
Fig 5. 2
16%
16%

The results suggest that 64% people are neutral in India’s

negative impact on CPEC. Only 16% people think that 3

64%
India can be threat for CPEC.

Fig 6: CPEC have positive

CPEC is creating many opportunities for Pakistan economy impact on Pakistan's
economy
in terms of investment, energy, transportation etc. This 1 2
1% 3% 3
project is a big hope for Pakistani economy which is 7%

observed by the people’s response as 89% people are of the

5
opinion that CPEC will have positive impact on economic 51% 4
38%
conditions of Pakistan. We have also cross checked it by

asking that CPEC will negatively affect economic growth

of Pakistan, we observe following response as shown in

Fig 7: CPEC negatively
figure 6. It is again clear that the CPEC have minimum affect Pakistan's economy

negativity as 60% people views it a positive step to

5
1
economic prosperity of the country. 8%
4 19%
21%

3 2
15% 37% 14
People of Baluchistan think that social issues (as
Fig 8: Social Issues 1
migration etc.) will negatively affect CPEC in Pakistan 3%

and more than 50% of the people are of the opinion that 2
5
25% 15%
social issues may have deterrence for CPEC. 21

3
25%
4
32%

Empirical Analysis:

In this study, we use “General to Specific method” to find the empirical results (given in Table 1

and Table 2). In this method, at first step, we use all the independent variables and exclude the

variable which is highly insignificant and we repeat this process till the coefficients are

significant. We follow the same process as in model 1 only sec1, sec2, res2, ind5, and iran1 are

statistically significant. So we drop the variable which is highly insignificant. In model 2, 3, 4

and 5; we repeat the same process, and we reach to the model 6 where all the variables are

statistically significant. The results suggest that sec2 [i.e. CPEC affects Pakistan’s internal

security] has negative impact on CPEC1 [i.e. CPEC have positive impact on the development of

Balochistan] and it implies that due to increase in issues regarding the internal security of

Pakistan, there is 0.03 lesser probability for CPEC’s positive impact on Balochistan. It means

that internal security has negative implications for CPEC1 because local Baloch community has

not satisfied from the development on CPEC and China’s involvement in the Baloch region. It

will also threaten the Baloch majority population into minority in Gwadar district. Furthermore,

Baloch nationalist Mehran Marri Baloch representative at the United Nations Human Rights

21
Survey through questionnaire from Local Baloch people.

15
Council (UNHRC) said that CPEC is an “illegal” project. He further said that China and Pakistan

have no legal right to construct on the Baloch soil. Any construction goes on is illegal and

international community should object to the construction,”. 22 So, Baloch nationalist creates

hurdles in the development of CPEC. We have also observed that there is 0.0857 higher

probability for CPEC success in Balochistan due to ind5 [i.e. CPEC will have implications for

Indian economy] and it is positively affecting CPEC. India wants to become Asian economic

giants but China counter India’s position in South Asia. CPEC is considers as a game changer for

the region it will also groomed the economies of China and Pakistan. It will further increase the

Chinese influence in Pakistan. India also claim that CPEC is passes through the region of Gilgit

Baltistan which is held a disputed territory of Kashmir in this way they are not legalized to

passes this route from disputed territory.23

22
https://baluchsarmachar.wordpress.com/2016/09/20/china-pakistan-economic-corridor-illegal-mahran-marri/
23
Majid Mahmood, “China-Pakistan Economic Corridor- The Geo-Strategic Dimension and Challenges”, CISS
Insight: Quarterly News and Views, 61.

16
 Table 1: Dependent Variable: CPEC1: CPEC have positive impact on the development of Balochistan.
model 1 model 2 model 3 model 4 model 5 model 6
Variables
dy/dx p-value dy/dx p-value dy/dx p-value dy/dx p-value dy/dx p-value dy/dx p-value
sec1 0.04848 0.06600 0.04923 0.07500 0.04745 0.05200 0.04814 0.05700 N/A N/A N/A N/A
sec2 -0.04937 0.03300 -0.05260 0.02600 -0.04777 0.03100 -0.04754 0.02900 -0.03767 0.08300 -0.03671 0.08600
sec3 0.01982 0.31200 0.01938 0.43300 N/A N/A N/A N/A N/A N/A N/A N/A
sec4 -0.02567 0.28700 -0.02165 0.35100 -0.01602 0.39100 N/A N/A N/A N/A N/A N/A
res2 -0.03895 0.09900 -0.03663 0.13800 -0.03169 0.15200 -0.02729 0.15100 -0.01840 0.45400 N/A N/A
ind4 0.01205 0.51000 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
ind5 0.06725 0.01900 0.07230 0.03500 0.07123 0.04800 0.06126 0.03900 0.08176 0.01600 0.08576 0.01400
pak1 0.02370 0.14300 0.02702 0.08600 0.03552 0.05900 0.03585 0.06400 0.05435 0.00500 0.04782 0.01600
soc1 -0.02456 0.20400 -0.02616 0.16000 -0.02935 0.05800 -0.03298 0.03600 -0.03612 0.14100 -0.04557 0.03100
iran1 -0.06025 0.07500 -0.06408 0.10400 -0.06022 0.12100 -0.05917 0.14800 -0.06580 0.06800 -0.06372 0.08900
iran2 0.04159 0.19700 0.04998 0.19700 0.04623 0.22900 0.04153 0.25200 0.05129 0.09300 0.04547 0.13400
Wald
40.60000 38.28000 38.29000 28.19000 34.51000 34.16000
chi2
Prob >
0.00000 0.00000 0.00000 0.00040 0.00000 0.00000
chi
Log
pseudo -24.05264 -24.36782 -24.85643 -25.22668 -27.00750 -27.36065
likelihood

17
The results obtained through questionnaire also clearly indicate that people think that CPEC will

affect Pakistani economy positively. Hence, CPEC should be realized and our empirical analysis

suggests that positive economic situation increase the possibility of success of CPEC by 0.04.

It’s all depended on the secure environment for the project. Pakistan armed forces providing

secure environment to the workers and Chinese labour to avoid any hurdles in the project hence

the project will increase the prosperity in the region which will make the people to reap benefits

of CPEC. While, Soc1 [i.e. there is loss for Baloch people if urban migration occurs in Gwadar]

affect CPEC negatively and its chances are 0.05. Iran1 indicating that Iran has concerns over

CPEC development and security in Balochistan and its has negative and significant implication

for CPEC1 as there is increase in Iran’s concern over development and security in Balochistan,

there is 6% chance of increasing failure of CPEC. Mostly Baloch according to survey considers

that Iran not created hurdles in Balochistan only minor chances are present that Iranian

involvement in any militant activities in Balochistan because Iran also desire to participate in the

mega project of CEC and takes advantages from this. 24 But empirical results prove that

involvement of Iran in the project may negatively affect CPEC.

The Table 2 represents the results of same method of General to Specific Model, with the

different dependent variable i.e. CPEC2 (Baloch people will play positive role in development of

CPEC). After the repeated estimation and skipping of most insignificant variable though the

estimation process, we find out that sec4, res11 res21 ind1 and trans are the significant variable

in determining the role of Baloch people in development of CPEC. The Sec4, indicating the

suitable situation of Balochistan regarding security is positive determining the behaviour of

24
“Iran desires a role in CPEC”, Dawn 10, September 2016.

18
Baloch toward CPEC. If there is sustained security of Balochistan, then the chance of positive

attitude of Balochi’s towards CPEC gets 7 % chance to success of CPEC.

19
 Table 2: Dependent Variable: CPEC2: Baloch people will play positive role in development of CPEC?
model 1 model 2 model 3 model 4 model 5 model 6
variable dy/dx p-value dy/dx p-value dy/dx p-value dy/dx p-value dy/dx p-value dy/dx p-value
sec4 0.042118 0.418 0.048217 0.348 0.048184 0.35 0.069013 0.129 0.081432 0.06 0.070533 0.087
res1 0.069412 0.231 0.075216 0.2 0.073349 0.216 0.091533 0.099 0.087501 0.115 0.068308 0.165
res2 -0.10412 0.051 -0.10096 0.057 -0.10565 0.051 -0.10143 0.061 -0.08821 0.081 -0.0947 0.059
ind1 -0.10852 0.046 -0.11132 0.041 -0.12254 0.013 -0.11452 0.021 -0.10549 0.028 -0.10923 0.02
ind4 0.03244 0.564 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
ind5 0.063861 0.329 0.065823 0.314 0.058188 0.359 N/A N/A N/A N/A N/A N/A
pak1 -0.03563 0.563 -0.02907 0.625 N/A N/A N/A N/A N/A N/A N/A N/A
pak2 0.05893 0.302 0.06246 0.267 0.063763 0.255 0.064245 0.248 N/A N/A N/A N/A
soc1 -0.07618 0.125 -0.07461 0.134 -0.07771 0.113 -0.0718 0.139 -0.05223 0.24 N/A N/A
trans 0.073267 0.111 0.084039 0.055 0.077029 0.065 0.084494 0.036 0.092252 0.021 0.081055 0.033
Wald
19.11 19.67 19.26 17.79 18.11 16.42
chi2
Prob >
0.0389 0.0201 0.0135 0.0129 0.006 0.0057
chi
Log
pseudo -54.76853 -54.964702 -55.063507 -55.574121 -56.281697 -57.038975
likelihood

20
The res1 (resistance from BLA is also influencing positive the reaction of Baloch people. If there

is resistance from BLA, it would raise 6 % probability from the people perception about CPEC

in Balochistan. The res2, indicating the resistance from Baloch Nationalists for CPEC, is

negatively affecting the role of Balochi in construction of CPEC i.e. 9% chance of failure in

developing the role of Balochi in CPEC due to intervention by Baloch Nationalists. Similarly,

ind1 (India is providing financial and arms assistance to BLA and BLF) is negatively affecting

the role of Balochi in success of CPEC by 10%. Whereas, the security of western route of

transportation is positively adding impact of inhabitants of Balochistan in CPEC, with the theme

of secure western route of transport, the role of Balochi is increasing by 8 %. To overcome the

resistance from Baloch nationalist Govt. of Pakistan decided to establish a special security

division for the security of Chinese workers, this force consisting of 10,000 security personnel

which including 5,000 from special services group of elite who are specially trained for counter

terrorism.25

Potential Benefits from the CPEC

 Diverse Investment opportunities

CPEC will help in bringing foreign investment in Pakistan. This trade route will
provide easy access and as a result investors will feel easy and secure to trade
over here.
China will have access towards Arabian Sea. This will help China in trading as
route will be shortened.
Central Asian countries will find a way to make money by connecting with other
parts of the world.

25
Priyanka Singh, “The China Pakistan Economic Corridor and India” Institute of Defence Studies and Analysis, 07
May ,2015.

21
 Regional connectivity
CPEC will help Pakistan connecting with Central Asian countries. These
countries are hard to access otherwise. The link with these resources rich
countries will help Pakistan boost its economy.

 Industrial Cooperation
Short and economic route will help Pakistan to develop its industry by importing
in the RAW materials from Central Asia and Afghanistan. China is rich in
industrial field thus giving him an upper hand to spread its products.

 Financial Cooperation
It will be easy for the countries to share wealth and resources to use them for
mutual benefits. In this way nations will help each other develop their economies

 Agricultural Cooperation
There are some crops that are indigenous to some areas and are not found in
others. Connecting these areas will help in stabilizing economies and eliminating
the shortcomings of this field.

 Tourism
Pakistan, China and Central Asian countries are gifted with mesmerizing sites.
The only hurdle is safe and comfortable access. This project will help people visit
these areas. As a result, these nations will get a chance to enhance their economy.

 Educational linkage
Pakistan and China are relatively better in the field of studies. This will give
students of Central Asian Countries a chance to flourish in the field of studies.

 Human resource development

By connecting different regions of the areas we will be able to manage the
resources properly. Some parts of Pakistan are full of natural resources such as
coal. In the same way Central Asians have a rich asset of oil. We will connect
these resource rich areas with resource deficient areas.

22
 Health Care
Medical facilities can be improved and easily accessed due to linkage of far off
areas. We can be able to use and know about the treatment techniques of different
areas.

 People to people contact

CPEC helps in bringing different cultures together. As a result it can help in
eliminating the hatred in people’s mind and keep them close to each other.

 Increase in livelihood opportunities

By connecting backward areas with economically rich countries we will bring
stability and betterment in the life of the individuals.

 Enhance Security and stability of the region

Pakistan is making and recruiting new force for the safety of envoys passing
through this route. This will help in bringing peace in this area. Even Afghanistan
and Central Asian Countries can be saved from the evil of terrorism due to
availability of resources.

23
Conclusion

To sum up, CPEC is the largest joint venture in the history of bilateral ties between China and

Pakistan. CPEC is aimed to connect China and Pakistan through land routes and railways for

economic integration purposes. The project would benefit both China and Pakistan economically

and strategically.

As far as, China is concerned, the project would prove China with access to the Central Asian,

Middle Eastern and European markets. The trade activities of China would be accelerated by the

project; thus, strengthening the Chinese economy. In addition, the project would provide more

secure and reliable passage to Chinese trade activities as compared to Indian Ocean route where

China is surrounded by American Allies. On the other hand, Pakistan would get infrastructural

development, in addition to countering its energy crisis. Pakistan would also get revenue as the

passage would yield transit fee. It would also increase trade activities as industrial zones are in

the process of establishment around the CPEC routes.

Although the project is fascinating and expected to yield numerous benefits to both Pakistan and

China but there are certain factors which are trying to obstruct CPEC. The most important

concern or hurdle in its way is internal instability and security situation of Pakistan. Politically,

there are growing civil military tensions at the apex. It creates an environment of uncertainty.

Due to this, Chinese Premier has once delayed his visit to Pakistan. The weak democracy and

ineffective leadership would remain unable to fully exploit the benefits of CPEC. Growing

corruption and demand of accountability and Dharna politics are weakening the democratic

culture.

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In addition to the internal instability, the country faces the vitriolic challenges of extremist,

sectarianism, separatism and terrorism. The very origin of the project, Gwadar or Balochistan

province is plagued in instability and uncertainty due to activities of Baloch Liberation Army

(BLA) and Baloch Liberation Front (BLF). These nationalist organizations are funded by the

foreign secret agencies to spur separatism in the province. The separatism and subsequent

military efforts to restore the state writ has created a situation of civil war in the province making

it vulnerable to insecurity.

The security challenge is acute and challenging the mega project. There is a great need to adopt

and implement vigorous security plans to ensure internal security and stability. The government

of Pakistan is well aware of the need and has taken certain steps to counter the challenge. It is

building Special Protection Unit (SPU) and Armed Division to secure the corridor from any kind

of threat. The government is trying to get the alienated Baloch leaders on the same page. They

are making efforts to share political power with the Baloch leaders. Pakistan army is carrying on

military operation in tribal areas to suppress the insurgent elements within the country. These

steps are praise worthy; yet, still there is a long way to go. The vigilant and strong security policy

will ensure the peace and stability, which would in turn facilitate the pace of progress and

prosperity.

25
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Agreement on China Pakistan Economic Corridor

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Mahmood, Majid, “China-Pakistan Economic Corridor- The Geo-Strategic Dimension and

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