By Muhammad Zulqarnain

Pakistan can strengthen its human capital by drawing on China's people-centred development model, which places education, skills, innovation and technological capabilities at the heart of economic growth, experts say.

The opportunity comes as China begins implementing its 15th Five-Year Plan (2026-2030), which further advances high-quality development with a strong focus on improving people's capabilities, innovation, social welfare and long-term economic resilience.

For Pakistan, where more than 60 percent of the population is under the age of 30, experts say investing in skills development, vocational education, digital technologies and innovation has become essential to transform the country's demographic advantage into sustainable economic growth. They believe deeper cooperation with China under the second phase of the China-Pakistan Economic Corridor (CPEC 2.0) could help accelerate that transition.

Speaking to Wealth Pakistan, Dr Tahir Mumtaz Awan, Director of the Pakistan Institute of China Studies at the University of Sargodha, said China's latest Five-Year Plan reflects a strategic transition towards high-quality development, where economic progress is increasingly linked with improvements in human capabilities, innovation, social welfare and economic resilience.

He said China's people-centred approach recognises that sustainable development depends on investing in education, skills, technological capabilities and access to economic opportunities.

"The people-centered approach seeks to ensure that development cooperation generates tangible benefits for local communities while creating sustainable opportunities for long-term economic growth," he said.

According to Dr Awan, China's development philosophy is also reshaping its international cooperation under the Global Development Initiative (GDI), with greater emphasis on poverty reduction, skills development, green technologies and institutional capacity building.

He said that under the GDI and the high-quality Belt and Road cooperation, China is increasingly promoting technology transfer, digital connectivity, renewable energy cooperation, innovation-driven industries and institutional partnerships alongside traditional infrastructure development.

Dr Awan noted that these priorities closely align with the objectives of CPEC 2.0, which aims to move beyond large-scale infrastructure projects by placing greater emphasis on education, vocational training, healthcare, agriculture and poverty alleviation.

He said cooperation in technical and vocational education, digital skills and industry-oriented training could help Pakistan develop a workforce capable of supporting advanced manufacturing, renewable energy and the digital economy.

"Pakistan can benefit from China's experience in linking skills development with industrial needs, as a productive workforce is essential for achieving sustainable economic growth," he added.

Dr Awan also pointed to the Joint Working Group on Socioeconomic Development under CPEC as an important platform for expanding cooperation in vocational education, healthcare, agriculture, water supply and poverty reduction.

Sharing a similar view, Haris Malik, Research Fellow at the Institute of Strategic Studies Islamabad (ISSI), said China's growing emphasis on people-centred development presents Pakistan with an opportunity to make CPEC 2.0 more inclusive by giving greater priority to human capital development.

He noted that the first phase of CPEC largely addressed Pakistan's infrastructure and energy deficits. According to official figures, around 43 projects worth nearly $25 billion have been completed, adding approximately 8,800 megawatts of electricity to the national grid and constructing nearly 888 kilometres of roads and highways.

"These projects have created a strong foundation for economic development. The next phase should focus on investing in people," he said.

Malik said CPEC 2.0 should prioritise industrial development through Special Economic Zones (SEZs), skills training, employment generation, support for small businesses and technology transfer to ensure Pakistan's workforce can fully benefit from emerging economic opportunities.

He stressed that industrial expansion cannot be sustained without developing the skills required by modern industries.

"The success of CPEC should not be measured only by the roads or power plants it builds, but by how much it improves livelihoods, creates employment, and develops the capabilities of local communities," he said.

Malik added that agricultural cooperation between Pakistan and China is also expanding, with 39 memorandums of understanding, four joint ventures and more than $1.3 billion in potential investment announced between companies from both countries.

Experts believe China's people-centred development model offers Pakistan a practical framework for shifting CPEC 2.0 towards knowledge, innovation and skills-based growth. By investing more in education, vocational training and technology transfer, Pakistan can strengthen workforce productivity, improve industrial competitiveness and create more sustainable employment opportunities for its growing young population.

Credit: INP-WealthPk