Pakistan, a strategically important country with an uncertain past, could not focus on its development and prosperity due to the international environment, internal instability, regional security conditions, and external security threats. Cold War, Afghan War, repercussions of 9/11, and Global War on Terror (GWoT) added fuel to the fire. In such erroneous circumstances, China Pakistan Economic Corridor (CPEC) in 2015 proved to be a breather for Pakistan and the third world countries to uplift their economy, basic state structure, and welfare of their people. Unconventionally, CPEC believes in mutual benefits and creating a win-win situation. GWoT affected Pakistan's whole society, so it took a strategic shift by enhancing economic relations with China on the principle of functionalism theory. The theory spotlights that cooperation in low politics can spillover in high politics, leading to regional integration. The CPEC has had pleasant impacts on Pakistan's political economy and made it a focal point in the region. With the project in full swing, Pakistan may become an economic hub for regional countries and gel other regions for international peace. This paper examines how CPEC helped Pakistan to come out of the nightmare situation of GWoT, develop its economy, and become an economic hub for the region.