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China - Pakistan Trade Corridor - Investment May Go Underwater

China is considered to be one of the most aggressive investor around the globe. Few years back China government supported many domestic companies to buy oil fields to ensure energy requirements keeps happening uninterruptedly.

Many Chinese Technology companies invested in startups to mint out gain when such companies go for an IPO.

China domestic business went through the stagnation post heavy investment in transportation, Real Estates, Manufacturing, Ports and forced government to look at other market to keep running their domestic companies factories. Any disruption in that may lead to chaotic financial and labour market collapse.

In view of that, Pakistan and China agreed to develop Trade corridor through Pakistan Occupied Kashmir with tentative investment of staggering $46 Bn investment. China sees this as an opportunity to mint out vast mineral available in Baluch area of Pakistan.

Unfortunately, Pakistan is undergoing turbulent time at domestic level. Many area such as PoK, Singh,  Baluch areas are facing unrest on daily basis. The unrest in the area where development sites are there forced Pakistani government to provide security cover to Chinese worker.

For 5000 Chinese worker, Pakistan allocated 15k security resources. I can imagine the need of security guard when corridor is ready for trade. The security cost will be very high and that too in an area where terrorist movements are very common.

Today, the unwarranted elements are listening to Pakistan government but they should learn from their experience in the past when government released the daughter of dreaded terrorist to get the release of ex General son.

In my point of view, both the country will incur heavy security cost which will make the trade route financially. At the same time any terrorist attack will lead to a situation where most of the companies will leave the corridor.                         
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About Devendra Prasad

20 years plus industry veteran of domestic and international ICT domain with the expertise in Business, Technology, Strategy and Analysis. Specializes in forecasting impact analysis, trends and recommendations for Investments, Technology and Regulations.
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