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

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• TLDR:

• Pakistan’s Dual Role in the Hormuz Standoff

• Gwadar Port and the CPEC Bypass Corridor

• 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 circulated widely among geopolitical observers.

BREAKING: Pakistan is mediating to reopen the Strait of Hormuz.

Pakistan also operates the only deep-water port on the Arabian Sea that lets China bypass the Strait of Hormuz entirely.

Both of these things are happening at the same time. Nobody has connected them.

Gwadar Port… pic.twitter.com/wuNkWTvfnq

— Shanaka Anslem Perera ⚡ (@shanaka86) March 28, 2026

Pakistan receives 81 percent of its arms from China, according to SIPRI data. That dependency, combined with its American alliance and active mediation role, places Islamabad in a structurally unique position during this crisis.

Gwadar Port and the CPEC Bypass Corridor

Gwadar Port sits approximately 400 kilometers from the Strait of Hormuz on the Balochistan coast. China Overseas Port Holding Company operates it under a 40-year lease. It serves as the southwestern terminal of the $62 billion China-Pakistan Economic Corridor.

CPEC connects the Arabian Sea directly to China’s Xinjiang region through 3,000 kilometers of roads, railways, and pipelines.

According to CPEC planning documents, this route cuts China’s Middle Eastern energy import distance from 12,000 kilometers by sea to roughly 2,500 kilometers overland.

Every barrel of oil that cannot pass through Hormuz strengthens the economic argument for routing energy through CPEC instead. A permanent Iranian toll regime at the strait would further accelerate Chinese investment in this overland alternative.

Iran’s fifth ceasefire condition currently demands permanent sovereignty over the Strait of Hormuz. If any version of that condition is accepted, the yuan toll system could gain international legitimacy. China stands to benefit most from that outcome.

The Sea Guardian drills conclude on April 2. The Trump administration’s diplomatic deadline falls on April 6. That four-day gap separates the end of Chinese military exercises in Pakistan’s waters from a moment when the largest American military buildup since 2003 either acts or withdraws. Pakistan’s position between these two timelines is not coincidental.

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