Qudsia Bano

China’s “two sessions” this year have attracted global attention by unveiling the latest plans for the country's economic transition from the traditional development models to new high-quality development prospects aimed at shaping up its future industrial and manufacturing systems, reports WealthPK. China's transformation from an agrarian society to an economic powerhouse in a few decades has caught the attention of policymakers worldwide, and Pakistan is now keen on leveraging these lessons to fuel its economic rise. China's ascent on the global economic stage has been nothing short of extraordinary, with consistent GDP growth rates outpacing most nations. Pakistan, facing its own set of economic challenges, is now exploring ways to replicate China's success and boost its economic prospects. According to the World Bank data, China's staggering success in economic growth was underpinned by massive investments in infrastructure. From 2011 to 2016, China injected an impressive $2.8 trillion into infrastructure projects. Talking to WealthPK, Executive Director of Pakistan Research Center for a Community with Shared Future (PRCCSF) Khalid Taimoor Akram said, “One of the crucial lessons that Pakistan aims to incorporate into its economic strategy is the emphasis on infrastructure development.

China's rapid growth was fueled by massive investments in infrastructure projects, such as high-speed railways, modern airports, and expansive road networks. Pakistan, recognizing the need for improved connectivity and a robust transportation network, should gear up to prioritize infrastructure development to enhance domestic and international trade.” “China's modernization efforts resonate as a beacon of hope and opportunity for the international community, including developing nations like Pakistan,” according to Khalid. He emphasized that another key aspect that Pakistan was keen to replicate was China's strategic approach to global trade. China has become a manufacturing hub, exporting goods worldwide and engaging in mutually beneficial trade agreements. Pakistan aims to diversify its economy by expanding its export base and forging stronger trade ties with countries beyond its immediate region. “While China's economic model may not be a one-size-fits-all solution, the valuable lessons it offers have the potential to guide Pakistan towards sustainable and inclusive growth. As Pakistan embarks on its journey to implement these lessons, collaboration with China and other nations will be crucial for success,” he continued.

Hassan Daud Butt, Senior Advisor and Research Fellow at the SDPI, told WealthPK, “The pivotal decisions and policies outlined during the ‘two sessions’ will also play a role in the global community, encompassing a diverse array of topics ranging from policies designed to attract foreign investment to initiatives for green development to combat climate change, a heightened focus on bolstering the social sector, improvements in domestic demand through salary and pension reforms, and promotion of modern infrastructure development to facilitate sustainable growth. China has adeptly diversified its economy, trade, technology, and market dynamics, ensuring a sustained high growth rate.” Hassan highlighted China's ambitious target to generate 12 million urban jobs while concurrently pursuing restructuring and sustainable 5% GDP growth. He emphasized that these aspirations served as a hopeful and instructive model for Pakistan's economic development. The prospect of creating a substantial number of urban jobs aligns with the pressing need in Pakistan to address unemployment and foster inclusive growth.

Moreover, China's focus on restructuring its economy signifies a commitment to adaptability and resilience in the face of changing global dynamics, offering an invaluable lesson for Pakistan to build a robust and flexible economic framework. Extracting three crucial lessons from China's economic trajectory, Hassan underscored the importance of policy continuity as the first key principle. Learning from China's success, Pakistan should prioritize sustained implementation of policies, ensuring a stable and conducive environment for economic growth. Secondly, the pragmatic approach adopted by China has played a pivotal role in its economic success. Pakistan, too, should emphasize pragmatism in policy formulation and execution, aligning strategies with practical considerations and real-world challenges. Lastly, Hassan emphasized the need for people-centric policies, echoing China's success in prioritizing the well-being and development of its citizens. By fostering inclusive policies that directly benefit the population, Pakistan can lay the foundation for a resilient and prosperous socio-economic landscape.

INP: Credit: INP-WealthPk