This study explores that CPEC is the mega driver of globalization and instrument of soft balancing and can bring economic equilibrium through development and interconnectivity to bridge parity in soft power between Indian and Pakistan, which has been mega impediment of positive peace. The study at hand had tested the framework of International Economic Leverage and Its Uses, to understand the nature, magnitude and layers of Sino-Pakistan Interdependence and its implications to maintain regional balance in South Asia and address the impasse between India and Pakistan. The study reveals that regional connectivity in the shape of CPEC carries economical leverage to bring quantum of parity between India and Pakistan which can bring fourth chance as potent catalyst to address the Kashmir Issue. The degree of interdependency will have multi dimensional spillover effects, if OBOR is extended and developed in Azad Jammu and Kashmir. It has natural pessage through AJ&K, via Khunjerab, along Neelam River having a natural junction with Srinagar Rawalpindi Road at Domail, Muzaffarabad. This route has been connecting Srinagar through trade and travel since 2008, through LoC. The paper suggests that It leads to a logical sequence, where the entire state of Jammu and Kashmir from both sides of LoC is declared as ‘free economic zone in five phases’, keeping speedy driver of globalization in the shape of OBOR in consideration. It will be mega Kashmir centric CBM and a major catalyst of conflict resolution.