On the one hand, Pakistan keeps China entangled by highlighting the potential of the CPEC; on the other, it abides by the dictates of the IMF to get new loans and delays CPEC projects.

Ishaq Dar, the Deputy Prime Minister and Foreign Minister of Pakistan, recently said that “Pakistan and China share a converging vision on regional and global issues.” Dar’s silver-tongue didn’t spell out the “vision”; he doesn’t have one. Pakistan doesn’t have one. That is the reason for its consistent loan-seeking and reliance on foreign bailouts to keep the country’s economy afloat.

Islamabad has been knocking at every possible door with its begging bowl. It holds the record of taking the maximum number of loans from the International Monetary Fund (IMF) – 23 in a short span of over 75 years since joining the financial body in 1950.

A part of Dar’s statement highlighted the true intention behind Pakistan’s relationship with China. Dar said that the ties between Islamabad and Beijing have “grown from strength to strength into a robust economic and strategic partnership”. The downside of the latter part of the statement is that it is overwhelmingly one-sided, heavily favouring Pakistan.

Pakistan has been shrewd in buttering up China to extract maximum economic help from the Chinese. Celebrating Pakistan-China’s 75th anniversary of diplomatic relations with much fanfare remains part of the same policy. Even the Senate passed a resolution praising China for its support for Pakistan. The latter, in turn, has led to Beijing’s entanglement in Pakistan’s economic mess.

Pakistan has become a rentier state, living off financial support provided to it by others. It has time and again failed abysmally to reform its economic structure. From the money coming from outside the country, the ruling elite and the military establishment siphon off a large chunk. Some portion of it is used to manage macroeconomic indicators, to keep hopes of the local population alive and, at the same time, keep money flowing in from countries like China, Saudi Arabia, Qatar and international financial institutions.

Islamabad’s relations with China are emblematic of what can be called Pakistan’s rent-seeking policy. For example, the China-Pakistan Economic Corridor (CPEC) has been presented by Islamabad as a “game changer” for the country. The project has been seen as vindicating “ironclad friendship” between Pakistan and China. It is sold to build infrastructure, create jobs, and transform the country’s economic structure for lasting suitability.

Hardly anything concrete has been achieved from the billions of dollars of investment from China. In the last few years, about $8 billion in potential investment was lost due to the failure to woo foreign investors. An editorial in Dawn vindicates the larger failure of the project: “The gap between ambition and delivery is too wide to ignore. The fact that only four SEZs have moved beyond the planning stage in over a decade exposes the deeper failure of execution.” This remains important as 75 per cent of the CPEC was supposed to go into the development of new and old Special Economic Zones (SEZs) that could have boosted outputs to be transported on the corridor to other countries, helping in increasing exports.

Pakistan’s decision not to establish SEZs was taken because the IMF had set no SEZ condition for new loans. On the one hand, Pakistan keeps China entangled by highlighting the potential of the CPEC; on the other, it abides by the dictates of the IMF to get new loans and delays CPEC projects. In this way, it keeps both sponsors hooked.

Despite all hyperbolic talks and symbolism about the potential of the project, given Pakistan’s structural constraints for economic reforms and security threats for foreign investors, CPEC has underperformed in achieving whatever goals it was supposed to achieve. Already, various issues are being raised over the CPEC. Many projects started since it was rolled out in 2014 have not been completed; work on many goes slowly, and many are yet to take off. And whatever has been completed has not yielded economic benefits.

China has realised that. The Chinese have expressed their frustration with Pakistan time and again. The Chinese were “not happy with the current progress of CPEC projects” and wanted the government of Pakistan to work to remove bottlenecks in the implementation of the project. Later, China’s concerns were compounded by increasing armed attacks in Balochistan, also targeting Chinese investments and nationals working on various projects and political instability in Pakistan, asking Pakistan to overcome its political crisis. None of these issues has been addressed. In fact, armed attacks in Balochistan have increased, and political instability remains.

There is a difference in the views of CPEC as well. While for Pakistan the CPEC is projected as a solution to all its problems, for China, it is part of larger Belt and Road Initiative (BRI). Therefore, expectations of the two are consequently different. Both, China and Pakistan, however, are aware of the fact that the CPEC is not meeting the desired expectations. Still, they keep selling it, in Pakistan particularly, by overstating its potential. Both countries have their interests in doing so; more so, Pakistan.

Pakistan’s foreign exchange reserves always fall short of the country’s needs to pay for imports and pay back loans to countries and institutions. Pakistan has mostly suffered a current account deficit; lately, again in April, the current account deficit was $324 million. That being the case, Pakistan needs two things: continuous foreign financial aid and its deferment, since it cannot pay back loans on time.

That is the reason Pakistan wants to be in China’s good books: it does so by showering praise on China and highlighting the potential of CPEC, which it knows very well has not been achieved. By rolling a narrative about “iron-clad” relationship, “all-weather” friendship, etc., Pakistan seeks keep China hooked on to the Pakistani dream. Time to time, high level visits and requests from the Pakistani side aim to convince China about investing its fortunes in Pakistan. The recent visit by President Asif Zardari to China was also aimed at securing Chinese assurance to stay engaged economically under CPEC.

Pakistan is eternally busy dragging China into various sectors of its economy. After welcoming Chinese investment in infrastructure, industry and agriculture, Pakistan has now opened the defence sector to China. During Zardari’s visit, it was clear that Islamabad wanted to present provinces as new potential investment options. He went on to sign memorandums of understanding (MoUs) on agriculture technology, water desalination, and tea production, with a focus on provincial-level collaboration: at least two agreements were signed with the Sindh Government.

Even China seems to know it well and has lost its enthusiasm in CPEC. Given the failure of CPEC to achieve its goals, its consistently rising costs, and the security threats to the investment, China now wants to protect the huge investment at all cost. To do so, it has announced new small projects — more to keep a watch on the current investment than being hopeful of securing benefits from them. China has not so far announced any major investment, knowing that previous ones have not yielded desired dividends.

Pakistan has been trying to increase its labour-intensive exports but faces tough competition from countries like Bangladesh and Vietnam. Any possible success in this sector would depend on credible policy determination and a viable business environment. Both these are lacking in Pakistan. And given the mindset of the Pakistani ruling elite, they are likely to continue their rent-seeking policy vis-à-vis China by playing various cards, like offering new sectors for investment, of late.

It is unlikely, however, that the inscrutable but highly mercantile Chinese will fall for Pakistani charm in the realm of economics. This would mean that while Pakistan-China will try to remain geopolitically together, geo-economic bonding between the two will not be as strong as Pakistan would like the world to believe.  

Disclaimer: Views expressed by writers in this section are their own and do not reflect Milli Chronicle’s point-of-view.

China’s foreign ministry said Sharif’s meetings would focus on bilateral ties and regional issues, though it did not specify whether the Iran conflict would dominate discussions.

“The leaders of China and Pakistan will have an in-depth exchange of views on bilateral relations and issues of common concern,” Chinese foreign ministry spokesman Guo Jiakun told reporters in Beijing.

Guo said China would work with Pakistan to “make positive contributions to the early restoration of peace and stability in the Middle East,” adding that Beijing supported Islamabad’s “fair and balanced mediating role” aimed at ending the conflict.

Pakistan has emerged as an active intermediary between Washington and Tehran in recent weeks and hosted talks involving U.S. and Iranian officials last month. Pakistan’s army chief Asim Munir was also expected in Tehran on Thursday, according to Iranian media reports.

A ceasefire agreement reached on April 8 has paused direct hostilities in the region, although U.S. President Donald Trump warned on Wednesday that diplomatic efforts faced narrowing prospects.

China has maintained a lower-profile role in the crisis, facilitating calls and meetings with Gulf officials while urging regional de-escalation. Following talks with Chinese President Xi Jinping in Beijing last week, Trump said Xi had offered Chinese assistance in reopening the Strait of Hormuz, a critical global oil shipping route disrupted during the conflict.

Chinese Foreign Minister Wang Yi earlier this month urged Pakistan to intensify mediation efforts during a phone call with Pakistani Foreign Minister Ishaq Dar.
Sharif’s visit also comes as Beijing deepens strategic coordination with Islamabad amid broader geopolitical tensions across Asia and the Middle East.

Chinese Foreign Minister Wang Yi made the remarks during a phone call on Tuesday with Pakistani Foreign Minister Ishaq Dar, according to China’s state news agency Xinhua.

“China will continue to support Pakistan’s mediation efforts and make its own contribution toward this end,” Wang said, Xinhua reported, referring to diplomatic engagement aimed at easing tensions between Washington and Tehran and addressing issues linked to the strategic Strait of Hormuz.

The comments came as Trump was expected to arrive in Beijing on Wednesday evening for meetings with Xi, whose government maintains close economic and strategic ties with Iran despite persistent friction between Tehran and Washington.

Pakistan has increasingly positioned itself as an intermediary between the United States and Iran as negotiations continue over a potential peace framework following recent conflict between the two countries.

Iran on Tuesday rejected suggestions that it should revise its latest proposals in the talks, after Trump dismissed the proposals as “garbage,” according to statements carried by international media.

The Strait of Hormuz, located between Oman and Iran, remains one of the world’s most critical maritime oil transit routes, carrying a significant share of global crude exports.

Any disruption to shipping through the waterway has historically raised concerns in energy markets and among major importing economies, including China.
Beijing has repeatedly called for dialogue and de-escalation in the Middle East while seeking to protect energy supply chains vital to its economy.

China has also expanded diplomatic engagement in the region in recent years, including brokering the restoration of diplomatic ties between Iran and Saudi Arabia in 2023.

Trump’s visit to Beijing comes amid broader discussions between Washington and Beijing over regional security, trade tensions and the future of U.S. policy toward Taiwan, according to officials and state media reports.

Speaking to reporters in Washington, Trump said Pakistani civilian and military leaders had urged the United States to avoid broadening military operations during sensitive diplomatic talks with Tehran.“As you know, Pakistan has been fantastic.

And their leaders have been fantastic, the field marshal and the prime minister, and they asked us not to do it during the negotiation,” Trump said when asked why the United States suspended “Project Freedom,” a naval mission intended to secure commercial shipping through the Strait of Hormuz.

Trump said the ceasefire between Washington and Tehran, in place since April 8, remained active despite what the U.S. military described as an Iranian attack on three American destroyers in the Gulf.The United States Central Command said American forces intercepted the attacks and launched retaliatory strikes against Iranian military targets.

Tehran, however, accused Washington of initiating the exchange.The confrontation marked the most serious challenge yet to the truce that halted weeks of conflict sparked by U.S. and Israeli strikes on Iranian targets beginning Feb. 28.

Iran responded during the war with missile and drone attacks across the Middle East and by restricting maritime traffic through the Strait of Hormuz, a critical route for global oil and gas shipments.

The United States announced Project Freedom on May 4 to escort merchant vessels through the strait after attacks on commercial shipping, though the operation was later suspended.Trump said negotiations with Iran were progressing positively and reiterated Washington’s demand that Tehran abandon any pathway to nuclear weapons capability.

“We’re not going to give them the right to have a nuclear weapon. There’s zero chance,” Trump said.Esmail Baghaei said Tehran was reviewing messages and proposals relayed through Pakistan but had not yet responded formally to the United States.Iranian state media quoted Baghaei as saying the Islamic republic had “not yet reached a conclusion.”

Pakistan has emerged as a central intermediary in efforts to end the conflict. Direct U.S.-Iran talks hosted in Islamabad last month failed to produce a final agreement but established ongoing diplomatic channels between the two sides.

Ishaq Dar separately spoke by telephone on Thursday with Abbas Araghchi, Pakistan’s foreign ministry said.Pakistani foreign ministry spokesperson Tahir Andrabi said Islamabad hoped negotiations would produce a sustainable resolution supporting regional and international stability.

“We hope the parties will reach a peaceful and sustainable solution that will contribute not only to peace in our region but to international peace as well,” Andrabi said.

Pakistan also said it was coordinating with Singapore to facilitate the repatriation of 11 Pakistani and 20 Iranian seafarers aboard vessels seized by U.S. authorities near Singaporean waters.

According to Iran’s ISNA news agency, Araghchi was due to convey “Iran’s positions and views on the framework of any understanding to completely end the war” during fresh meetings with Pakistani officials.

The minister had visited Islamabad a day earlier, meeting Army Chief Asim Munir, Prime Minister Shehbaz Sharif and Foreign Minister Ishaq Dar before flying to Muscat, where he met Haitham bin Tariq as regional diplomacy intensified.Other Iranian envoys returned to Tehran for consultations and to obtain instructions related to ending the conflict, ISNA reported.

Before those talks, the White House had said Trump’s peace envoy Steve Witkoff and his son-in-law Jared Kushner were preparing to travel to Pakistan for further indirect negotiations.Trump later scrapped the trip, telling Fox News there was no reason to continue “sitting around talking about nothing,” while criticizing Tehran’s negotiating position.

“They gave us a paper that should have been better and interestingly immediately when I canceled it, within 10 minutes, we got a new paper that was much better,” Trump said, without giving details.Asked whether canceling the trip meant a return to open conflict, Trump said: “No, it doesn’t mean that. We haven’t thought about it yet.”Araghchi described his initial Pakistan visit as “very fruitful” but questioned Washington’s seriousness about diplomacy.“

Have yet to see if the U.S. is truly serious about diplomacy,” he said.Pressure for a diplomatic breakthrough has intensified as the Strait of Hormuz remains effectively blocked, disrupting one of the world’s most important oil and gas shipping routes and driving energy prices sharply higher.

Iran’s Islamic Revolutionary Guard Corps said it had no intention of lifting the blockade.“Controlling the Strait of Hormuz and maintaining the shadow of its deterrent effects over America and the White House’s supporters in the region is the definitive strategy of Islamic Iran,” the Guards said on Telegram.

The United States has responded by tightening restrictions on Iranian ports and increasing maritime enforcement actions against vessels linked to Tehran’s energy exports.Iran’s military accused Washington of “blockading, banditry and piracy” and warned that continued pressure would trigger a response.

Regional tensions also escalated on the Lebanese front, where Israeli Prime Minister Benjamin Netanyahu ordered strikes against Hezbollah targets after accusing the group of violating a ceasefire recently extended for three weeks.

Lebanese state media reported Israeli strikes in several southern districts, while Lebanon’s health ministry said attacks in Nabatieh and Bint Jbeil killed six people.Israel’s military said it had killed multiple Hezbollah operatives, including fighters allegedly transporting weapons.

Although Trump had earlier expressed optimism about peace after meetings with Israeli and Lebanese envoys, Hezbollah parliamentary bloc leader Mohammed Raad urged Lebanon to withdraw from negotiations, warning that any agreement without broader consensus would be politically unsustainable.

Araghchi is expected to travel to Moscow after completing the Islamabad consultations.

The meeting brought together Badr Abdelatty, Ishaq Dar and Hakan Fidan, who reviewed the evolving security situation and emphasized support for efforts aimed at achieving a permanent ceasefire, according to an official statement.

Participants welcomed Pakistan’s mediation role in ongoing negotiations between the United States and Iran, expressing hope that diplomatic progress would help de-escalate tensions and limit broader economic and security fallout.Recent developments have raised expectations of a breakthrough.

A ceasefire between Israel and Hezbollah, alongside Iran’s decision to reopen the Strait of Hormuz during a temporary truce, have eased pressure on global energy markets and reduced immediate risks of escalation.The conflict, which began on Feb. 28 with U.S. and Israeli strikes on Iran, had disrupted shipping routes and triggered volatility in global oil supplies.

The reopening of the strait long a key U.S. demand—combined with a ceasefire extension linked to Lebanon, has aligned core conditions in ongoing talks.Donald Trump said on Friday that negotiations with Tehran were nearing completion, describing a deal as “very close” and indicating that most major issues had already been resolved.

Previous talks led by J.D. Vance in Pakistan did not produce an agreement, but further negotiations are expected as diplomatic channels remain active.Trump also credited regional actors including Saudi Arabia, the United Arab Emirates and Qatar for supporting stabilization efforts, while praising Shehbaz Sharif and Asim Munir for their role in facilitating dialogue.

The Antalya meeting reflects intensified regional coordination as governments seek to consolidate recent gains and move toward a broader settlement that could end hostilities and restore stability across the Middle East.

The announcement came a day after talks in Pakistan ended without agreement, underscoring persistent divisions over terms to end a conflict launched on Feb. 28 by the United States and Israel. The blockade is aimed at pressuring Iran to reopen the Strait of Hormuz and accept a broader settlement addressing its nuclear and missile programs, as well as its regional activities.

Trump indicated that diplomatic channels remain open, saying Iran had reached out to explore a possible resolution. “We’ve been called by the right people … and they want to work a deal,” he told reporters outside the White House.Iran signaled conditional openness to negotiations.

Judiciary chief Gholam Hossein Mohseni Ejei said discussions must proceed on the basis of “principles and logic,” while other officials warned that Tehran would respond if the situation escalates.The blockade drew sharp reactions from Iran, which threatened countermeasures targeting ports across the Arabian Gulf and Gulf of Oman, raising the risk that the two-week ceasefire declared earlier could collapse before its April 22 expiry.

At the core of the dispute remain differences over Iran’s nuclear program and control of the Strait of Hormuz, a critical global energy corridor through which roughly one-fifth of the world’s oil supply typically passes. Its closure has already disrupted markets and driven up oil prices.

U.S. Vice President JD Vance, who led the American delegation in the recent talks, said Iran had not provided assurances it would refrain from pursuing nuclear weapons capability. Tehran has long denied such intentions while defending its right to civilian nuclear development, including uranium enrichment.

Iran’s negotiating position, articulated by Parliament Speaker Mohammad Bagher Qalibaf, emphasized sovereignty over the strait, an end to hostilities, and compensation for wartime damage.

Iranian officials also dismissed the blockade as exaggerated, with parliamentary spokesperson Ebrahim Rezaei describing it as “more bluffing than reality.”Pakistan has indicated it may facilitate further dialogue, with Foreign Minister Ishaq Dar expressing willingness to host another round of talks, though no timeline has been confirmed.

Both sides have maintained firm public positions, with Trump warning that any Iranian attempt to challenge the blockade would be met with force, while Iranian foreign ministry spokesperson Esmaeil Baqaei said the measure risked further destabilizing the global economy.

The announcement came a day after talks in Pakistan ended without agreement, underscoring persistent divisions over terms to end a conflict launched on Feb. 28 by the United States and Israel. The blockade is aimed at pressuring Iran to reopen the Strait of Hormuz and accept a broader settlement addressing its nuclear and missile programs, as well as its regional activities.

Trump indicated that diplomatic channels remain open, saying Iran had reached out to explore a possible resolution. “We’ve been called by the right people and they want to work a deal,” he told reporters outside the White House.

Iran signaled conditional openness to negotiations. Judiciary chief Gholam Hossein Mohseni Ejei said discussions must proceed on the basis of “principles and logic,” while other officials warned that Tehran would respond if the situation escalates.

The blockade drew sharp reactions from Iran, which threatened countermeasures targeting ports across the Arabian Gulf and Gulf of Oman, raising the risk that the two-week ceasefire declared earlier could collapse before its April 22 expiry.

At the core of the dispute remain differences over Iran’s nuclear program and control of the Strait of Hormuz, a critical global energy corridor through which roughly one-fifth of the world’s oil supply typically passes. Its closure has already disrupted markets and driven up oil prices.

U.S. Vice President JD Vance, who led the American delegation in the recent talks, said Iran had not provided assurances it would refrain from pursuing nuclear weapons capability. Tehran has long denied such intentions while defending its right to civilian nuclear development, including uranium enrichment.

Iran’s negotiating position, articulated by Parliament Speaker Mohammad Bagher Qalibaf, emphasized sovereignty over the strait, an end to hostilities, and compensation for wartime damage.

Iranian officials also dismissed the blockade as exaggerated, with parliamentary spokesperson Ebrahim Rezaei describing it as “more bluffing than reality.”
Pakistan has indicated it may facilitate further dialogue, with Foreign Minister Ishaq Dar expressing willingness to host another round of talks, though no timeline has been confirmed.

Both sides have maintained firm public positions, with Trump warning that any Iranian attempt to challenge the blockade would be met with force, while Iranian foreign ministry spokesperson Esmaeil Baqaei said the measure risked further destabilizing the global economy.

Pakistan’s Foreign Minister Ishaq Dar said it was “imperative” that both parties maintain their ceasefire commitments, adding that Islamabad would continue facilitating dialogue between Washington and Tehran following the inconclusive talks.

U.S. Vice President JD Vance, who led the American delegation, said the absence of a deal was “bad news for Iran much more than it’s bad news for the United States,” reiterating Washington’s demand for a firm commitment from Tehran not to pursue nuclear weapons capability.

He said the United States had made its “red lines” clear, including preventing Iran from acquiring both nuclear weapons and the means to rapidly develop them.

Iranian officials rejected the U.S. position, with state-linked Tasnim news agency reporting that “excessive” American demands had hindered progress. Tehran signaled that discussions would continue, with technical teams expected to exchange documents in follow-up engagements.

Iran’s parliamentary speaker Mohammad Baqer Qalibaf said the U.S. had failed to build trust during the talks despite what he described as “forward-looking” proposals from the Iranian side. He emphasized longstanding skepticism rooted in past negotiations, saying Washington must demonstrate credibility before progress can be made.

Iran’s foreign ministry also downplayed the outcome, stating that no agreement had been expected in a single session and expressing confidence that diplomatic contacts would continue with Pakistan and other regional actors.

Former Iranian foreign minister Mohammad Javad Zarif attributed the breakdown to what he called U.S. attempts to “dictate” terms, warning that negotiations with Iran would not succeed under unilateral conditions.

The Islamabad meeting marked the highest-level direct engagement between the United States and Iran in more than a decade and the most senior talks since the 1979 Islamic Revolution.

The discussions were aimed at halting a conflict that began over six weeks ago and has driven up global oil prices while threatening key maritime routes.Central to the negotiations was the Strait of Hormuz, a critical chokepoint for roughly one-fifth of global energy supplies.

The U.S. military said it was preparing to ensure safe navigation through the waterway, including mine-clearing operations, while Iranian state media denied any U.S. naval transit in the area.

Tehran has demanded control over the strait, war reparations, and broader ceasefire arrangements extending to regional theaters including Lebanon. U.S. officials have focused on securing freedom of navigation and curbing Iran’s nuclear enrichment capabilities.

The talks took place under tight security in Islamabad, where thousands of paramilitary forces were deployed. Pakistani officials described fluctuating tensions during the discussions, with “mood swings” and intermittent progress reported by sources familiar with the negotiations.

The Iranian delegation, which arrived dressed in black to mourn those killed in the conflict, also raised concerns about a U.S. airstrike on a school near a military compound, an incident the Pentagon has said is under investigation.

Despite the impasse, analysts noted the seniority and size of the Iranian delegation as an indication of Tehran’s willingness to engage, even as deep mistrust continues to define the diplomatic landscape.

The proposal, endorsed by lawmakers on a security panel, includes “financial arrangements and rial toll systems” aimed at asserting Iran’s sovereign role, according to state television.

The plan also provide for cooperation with Oman, which shares control of the waterway’s southern side.Strategic chokepoint under strainThe Strait of Hormuz, a key route for global oil and gas shipments, has been effectively constrained since the onset of the U.S.-Israeli war with Iran.

Tehran has limited passage for vessels it says are linked to adversaries, tightening oversight of maritime traffic.Iran’s Revolutionary Guard Corps has maintained a security presence in the area, with maritime monitors reporting that only a limited number of ships are currently transiting daily, often via routes approved by Iranian authorities.

Iranian officials have argued that transit fees are necessary to ensure the safety of shipping through the strait. The chairman of a parliamentary civil affairs committee, cited by Fars news agency, said vessels should contribute financially to security arrangements in the corridor.

The proposal signals a potential shift toward formalizing Iran’s control over access to the waterway, raising concerns among energy markets already strained by supply disruptions.Limited passage amid diplomatic signalsSome vessels have been allowed to pass in recent days.

Ishaq Dar said Iran had permitted 20 additional ships to transit the strait, a move he described as supporting regional stability.U.S. President Donald Trump said last week that 10 oil tankers were allowed through as a goodwill gesture during ongoing tensions, though details of any linked negotiations remain unclear.

The extent and timing of the proposed toll system’s implementation have not been specified.