Pakistan-China defence and strategic ties flourished and consolidated during the Musharraf era (1999-2008). This era was particularly important because it was the time when big changes occurred in the international environment mainly due to 9/11 (2001) attacks in the U.S.A., but the event did not affect the deep-rooted Pakistan-China friendship. In fact, the defence and strategic relations grew further during the phase and that was evident from the extensive exchange of defence delegations between the two states. During these exchanges of delegations, other than the matter of professional interest, issues of international significance were also discussed. The improvement in defence relations can also be observed from the joint ventures in the defence sectors between the two States. These ventures enhance the defence capability of Pakistan. The governments of both States tried their best to improve the trade relations that were below the existing potential. These efforts bring positive results but still there is lot of potential to realise and enhance the economic relations. To improve the economic condition of Pakistan, China also helped Pakistan in energy sector. Various projects related to energy were started in Pakistan with the help of China between 1999 and 2008. In fact, Pakistan and China started and successfully completed strategically important joint ventures during the phase. China also helped Pakistan in the development and upgradation of several projects which were and still are economically and strategically important for Pakistan. Efforts to create misunderstandings and hurdles in the way of cordial relations were tactfully handled by the Governments of Pakistan and China.