This research paper based on secondary data utilized the mixed methodology to examine the persistent trade deficit between Pakistan and China, a key South Asian ally, with a focus on identifying the underlying causes and potential solutions. economic indicators, and policy impacts. Key areas of investigation include the competitiveness of Pakistani industries, the role of the China-Pakistan Economic Corridor (CPEC), and the effectiveness of export diversification efforts & drive. Case studies on the textile industry, infrastructure development, and Chinese investment in Pakistan's energy sector provide in-depth insights into the economic dynamics shaping bilateral trade. The findings highlighted structural imbalances, policy shortcomings, and strategic opportunities for enhancing trade relations. Recommendations are proposed for improving Pakistan's export performance, fostering industrial competitiveness, and optimizing the benefits of economic cooperation with China. This paper aims to contribute to the discourse on sustainable trade strategies and economic development in the context of Pak-China relations and guideline for future researchers.

  Key Words: Pak-China trade relations, trade deficit, China-Pakistan economic corridor (CPEC), export diversification, Chinese investment in Pakistan