Geo-economics is becoming an integral component of inter-state relations. States are employing economic instruments to project their power, thus, redefining their traditional relations with other states. Pakistan and China view each other as strategic partners. Over the decades, China has extended considerable economic, military and technical assistance to Pakistan. As both neighbours expand their economic relationship through infrastructure development and trade corridors, including the China Pakistan Economic Corridor (CPEC), such cooperation will directly interact with their existing strategic partnership. Beijing and Islamabad have been pursuing their geo-strategic interests in a framework that is progressively being shaped by geo-economics. The Chinese role and interests, in shaping the regional security order, are increasing. Geo-economic instruments are being employed to achieve geo-strategic objectives in a region, which is already marked by conflict and instability. This study explores how expanding economic relationship between Beijing and Islamabad will influence the bilateral strategic engagement, and in turn, impact the dynamics of the regional security.