If you think you burn 3500cal/day, and think you eat 1700cal/day, and then say that you do physical work daily - I can assure you that either one, but more probably both, of the numbers that you're looking at are wrong. So there's not much anyone can tell you until you recalculate and give numbers that are vaguely realistic.
And if you want a "more cut" mid-section, you'll have to lose bodyfat. Whether or not you lose weight in doing so will depend on if you add muscle while you lose the fat.
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