This agreement has sparked discussions about Pakistan’s sovereignty, particularly regarding the presence of foreign forces within its borders
A week before the Shanghai Cooperation Organisation (SCO) meeting in Islamabad, Pakistan and China have finalized a $45 billion joint security agreement, raising concerns among Indian military observers. The deal, pursued by Beijing since 2022, is aimed at securing Chinese nationals involved in the China-Pakistan Economic Corridor (CPEC) projects. Under the agreement, security for key infrastructure will be handled by Pakistani personnel in outer zones, while Chinese personnel will manage inner areas, according to experts tracking the region.
This agreement has sparked discussions about Pakistan’s sovereignty, particularly regarding the presence of foreign forces within its borders. It also marks the second major financial boost to Pakistan’s military since the defense budget of Rs 2.127 trillion was approved in June. Earlier, Rs 60 billion was allocated for Operation Azm-e-Istehkam, a national counterterrorism initiative.
As part of the new security pact, China has proposed enhanced counterterrorism measures, including advanced vehicle-mounted security systems and armored vehicles, highlighting its concern for safeguarding investments amid increasing violence. Recent attacks targeting Chinese workers in Pakistan, like the Balochistan Liberation Army’s (BLA) assault in Karachi that killed two Chinese nationals, have underscored the security challenges.
“Political instability, soaring fuel prices, and excessive external debt have further strained the economy. The world is questioning Pakistan’s focus on China’s interests over its own priorities in this turmoil,” remarked a China-Pakistan analyst.
The SCO meeting on October 15-16, which will be attended by Indian External Affairs Minister S. Jaishankar and Chinese Premier Li Qiang, is expected to bring some of these concerns into focus. Pakistan, meanwhile, continues to face severe economic challenges, compounded by disruptions in its internet services due to China’s upgrades to its Web Management System, referred to as an “internet firewall.” The country is also heavily reliant on International Monetary Fund (IMF) loans, with the latest $7 billion bailout marking its 24th since 1958.
Of the funds from the new security agreement, Rs 35.4 billion will be allocated to Pakistan’s military, with an additional Rs 9.5 billion earmarked for naval security. Observers believe the deal reflects China’s growing involvement in Pakistan’s internal security, especially in light of repeated attacks on Chinese nationals and CPEC projects. In Balochistan, groups like the BLA and the Balochistan Liberation Front have targeted Chinese interests, including a recent attempt by the BLA’s Majeed Brigade to breach the Gwadar Port Authority complex.
The ongoing insurgency in Balochistan, fueled by grievances over political marginalization and economic inequality, has intensified in recent years. Local groups argue that while China and Pakistan benefit from Balochistan’s resources—rich in gas, oil, copper, and gold—locals are left out. Since 2018, there have been at least seven attacks on Chinese nationals, with multiple casualties.
In response, China has sought to deploy its own security personnel to protect the 1,200 Chinese workers in Pakistan, though Pakistan has not fully agreed to this. Instead, Pakistan set up army and naval units in 2016 to guard CPEC projects, but Beijing remains unconvinced of their effectiveness.
The CPEC project, part of China’s larger Belt and Road Initiative (BRI), aims to link Pakistan’s ports in Gwadar and Karachi with China’s Xinjiang region through a 3,000-km network of roads, railways, and pipelines. While this security pact may help safeguard China’s investments, critics argue it risks pushing Pakistan deeper into economic dependence on Beijing, further compromising its sovereignty.
Many also believe that Pakistan’s focus on protecting Chinese interests could worsen internal discontent, especially in regions like Balochistan, where locals feel sidelined. “Operation Azm-e-Istehkam,” launched in response to escalating violence, is seen by some as another move prioritizing foreign interests at the expense of ordinary Pakistanis.
Experts warn that Pakistan is at a crossroads. Prioritizing Chinese projects like CPEC could ensure the continuation of these initiatives, but the challenge lies in balancing these security commitments with addressing internal unrest. The key to overcoming Pakistan’s current economic and political crises may depend on ensuring that large projects like CPEC bring benefits not just to foreign investors, but to local populations as well.

