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Pakistan Lures China Firms to Economic Zones After Bomb Attacks

  • Pakistan is a flagship destination of China’s Belt and Road
  • Terror attacks have complicated Pakistan’s investment plans

Pakistan is dangling tax incentives for Chinese companies, as Beijing’s closest ally in South Asia drums up interest for special economic zones months after terrorists were suspected to be involved in the explosion of a bus carrying workers from China.  

The country has seen an uptick in militant activity, which has complicated Prime Minister Imran Khan’s efforts to reassure Chinese businesses and investors. That’s a concern for Pakistan as it is a flagship destination for President Xi Jinping’s Belt and Road initiative that started almost a decade ago with projects valued at about $25 billion.