Pakistan’s Dual Role in the Hormuz Crisis and the CPEC Corridor

TLDR: Pakistan delivered Washington’s 15-point peace plan to Iran on the same day Chinese warships docked in Karachi. Gwadar Port, operated by China under a 40-year lease, sits 400 km from Hormuz and bypasses the blocked strait entirely. Hormuz traffic has collapsed over 90 percent, with Iran collecting yuan tolls and drafting laws to make them permanent. Pakistan owes China over $30 billion and sources 81 percent of its arms from Beijing while holding U.S. ally status. Pakistan finds itself at the center of a growing geopolitical puzzle as the Strait of Hormuz crisis deepens. The country is actively mediating between the United States and Iran while simultaneously hosting China’s most strategic maritime bypass. Analysts are now watching Islamabad closely. Pakistan holds Major Non-NATO Ally status with Washington, owes Beijing over $30 billion, and operates a port that becomes more valuable the longer Hormuz stays closed. Pakistan’s Dual Role in the Hormuz Standoff Traffic through the Strait of Hormuz has collapsed by over 90 percent. Iran is currently collecting yuan-denominated tolls from Chinese-linked vessels passing through the strait. Bloomberg reports that Iran’s parliament is drafting legislation to make these tolls permanent. On March 25, Pakistan delivered a 15-point American peace plan to Tehran. Special Envoy Steve Witkoff confirmed this at a Cabinet meeting, describing the mediation channel as “strong and positive.” Prime Minister Shehbaz Sharif has also offered to host direct face-to-face talks between the parties. On the very same day, PLA Navy Ship Daqing docked in Karachi. The vessel is participating in Sea Guardian IV, joint naval drills with Pakistan running through April 2. These exercises are taking place in the Arabian Sea, the same waters where Gwadar Port operates. Analyst Shanaka Anslem Perera noted the timing on social media: “Pakistan is the only country on earth that profits from both outcomes of this war.” This observation has since c...