Pak China relation in friendship and trade begins since China?s year of independence 1949. Pakistan is the first country in the world to accept china at UNO forum. China respects the stand and support of Pakistan. China is the only country in the world, which helps Pakistan at every forum, for instance trade, commerce, agriculture, defence etc. Presently they are contributing on large scale in Power and Energy sector to tackle the shortage of electricity and power problems in Pakistan. Additionally China is helping Pakistan in defence related activities. In long-term the two governments have accorded to continue to play the lead role in providing a strategic framework and institutions of cooperation and guiding and facilitating economic and commercial interaction. The two countries agreed to strengthen the cooperation between the private enterprises, which will be the real operators. Collaboration between research institutions will help in analysing the situation, identifying the potential areas and providing assessment that will help the collaboration process. An interaction between government agencies, business community and the research institutions will have synergic impact. Key Words: Friendship, Government, Energy, Electricity, Institution, Analysing.