The Sino-Pak relationship is a unique case in international politics, while they have different ideologies and cultures. The trusted relations were begun after the border agreement between both countries in 1963. Non-interference policy in each other’s internal affairs, win-win policy, common hostility with India on geopolitical disputes, and support for each other at international forums are fundamental factors of their long-lasting friendship. In the 21^st century, their relations entered a new phase after the inception of CPEC in April 2015. It's expected that after the completion of CPEC, the relationship will touch new dimensions and is considered ideal in the bilateral relationship’s milieu. This research explores the strategic and economic significance of CPEC for both states. Furthermore, investigates the internal and external challenges for CPEC and how to overcome these Challenges.

Keywords: Sino-Pak, Economic Relations, Strategic Relations, Bilateral Trade, KKH, CPEC.