The Chinese army is much better equipped that the Indian army and also has a much bigger economy supporting it. But they will also be taking significant losses if war breaks out. The question is if they want to take that risk for barren land that has no economic or strategic value. Plus there is...
The machine readable passport can have biometric information in it. But it is not compulsory. Clearly Pakistan does not have it. What is more problematic is not having a police verification. In India, renewal no longer need police verification but the first time passport does.
So what you are saying is that if the person is applying from abroad, his passport will be issued from a city in Pakistan and not from the embassy where he applied to.
Your government has been consistently saying that he is not in Pakistan and has been issuing passport to him. Most countries found in this situation would be feeling very embarrassed.
I have already given the link. In fact I have only given the link. The link is from the website of your Ministry of Foreign Affairs.
You can follow http://mofa.gov.pk/unsc-sanctions/ and the link called " SRO 741 dated 18 August 2020 "