Militant Activity Threatens China's Economic Projects in Pakistan
Militant groups, notably TTP and BLA, are intensifying operations in regions critical to the China-Pakistan Economic Corridor (CPEC), coinciding with ongoing discussions for $1.8 billion in funding for the Karakoram Highway. This escalating violence poses risks to CPEC's future and could disrupt economic cooperation between China and Pakistan, potentially undermining Pakistan's economy.
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The Tehreek-e-Taliban Pakistan (TTP) is increasing its presence along the Karakoram Highway (KKH), which is crucial for the China-Pakistan Economic Corridor (CPEC). Concurrently, the Baloch Liberation Army (BLA) has escalated its attacks in Balochistan, targeting Chinese interests and complicating security for projects like the Saindak Copper and Gold Mine.
Discussions are ongoing for $1.8 billion in financing to realign the KKH’s Thakot-Raikot section, vital as sections will be submerged when the Diamer-Bhasha Dam becomes operational in May 2028. The recent uptick in militant activity coincides with U.S.-China competition for minerals and the operational challenges faced by Chinese firms in both Gilgit-Baltistan and Balochistan. To mitigate risks, Pakistan must enhance its security framework while addressing local grievances to prevent recruitment by militant groups.
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