The China-Pakistan Economic Corridor is a part of the People’s Republic of China’s Belt and Road initiative which is expected to bring peace and prosperity in the South Asian region. This project connects Pakistan and China economically and transforms Pakistan as a transportation hub via Gwadar port. CPEC, coined as a “game changer” by Pakistani officials, is the most recent manifestation of a burgeoning relationship between China and Pakistan. China is financing the projects through a network of zero-interest loans, grants, and low-interest loans to the Pakistani Government with a total planned investment of 45 billion USD. The main goal of CPEC is to increase economic connectivity and stability through Pakistan. The purpose of this research is threefold as to study the potential of China-Pakistan Economic Corridor (CPEC) on the Islamic Republic of Pakistan, to find out the internal and external challenges of CPEC for Pakistan’s economy and to examine that whether CPEC will be a lifetime opportunity for Pakistan’s economic development or not and lastly as how exactly the cooperation entails in terms of physical infrastructure, economic stimulus, and the background of the relations between China and Pakistan. Supervisor:- Dr. Muhammad Jehangir Khan