Muneeb ur Rehman

China's 14th five-year plan can offer valuable insights for Pakistan as the country seeks to address its unique economic, social, and environmental challenges, Sohail Mahmood, DG of China-Pakistan Study Centre at the Institute of Strategic Studies Islamabad (ISSI) told WealthPK. It is a comprehensive plan that puts specific emphasis on innovation-led growth, green economy, infrastructure upgradation, and modernization of industry chains, he said. Effective implementation of plans needs political will and institutions and China has both of these elements that have made its five-year plans successful in the past, he said. He said the basic problem with Pakistan was that its economic planning was arbitrary and underwent substantial changes with the change of government.

This is hampering the country’s ability to have a cost-benefit analysis of policies with regard to the scale of their outcomes. “At present, Pakistan produces 6.8% of energy from renewable sources. China's 14th five-year plan places a significant emphasis on clean energy and environmental sustainability. Pakistan can learn from China to incorporate eco-friendly policies in order to mitigate the environmental challenges, so as to meet the target of 60% of renewable energy by 2030,” he asserted. “Today, the industrial growth’s share in Pakistan has reduced to just 19% and recorded a negative growth rate of 2.94% in FY2022-23. China’s innovation-led industrial growth envisioned under the 14th five-year plan is the key lesson for sustainable industrial growth of Pakistan,” he said.

Sohail said China's five-year plans are known for their long-term vision and Pakistan could benefit from adopting a similar approach, setting clear objectives and goals for future to ensure sustainable growth and development. China's five-year plans increasingly focus on innovation and technology. Along the same lines, Pakistan should invest in research and development, encourage entrepreneurship, and foster a culture of innovation to remain competitive in the global economy, he suggested. The Chinese government is continually practicing the formulation and execution of five-year plans. With new developments in the spectrum of global economy, these plans assist the country in reshaping its economic priorities accordingly. In this regard, Pakistan has many lessons to learn from the Chinese experience.

Credit: INP-WealthPk