China has emerged as the world’s second largest economy, and the largest exporter of goods with 9.6 per cent of the global share. Moreover, the last two decades have seen China emerging as an international and regional power of the 21st century. Thus, in order to continue with the economic benefits, China wants peace and stability as well as to play an active role on international and regional fronts. On the other hand, Pakistan, the world’s sixth most populous country, is a major power of South Asia. While having a developed infrastructure and vibrant political and security institutions, Pakistan is nevertheless currently facing many challenges on the economic front, including political instability and religious extremism. This paper is an attempt to analyze the challenges faced by both China and Pakistan in the post-Cold War era.