China’s Shifting Priorities Require Pakistan To Build Institutional Capacity
Pakistan needs to strengthen its institutional capacity and realign its economic strategy with China’s changing priorities to secure greater benefits from bilateral cooperation, a policy paper said.
Key Findings:
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China’s 15th Five-Year Plan (2026-2030): Focuses on industrial and technological development, productive capacity, and innovation.
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Shift in Model: Unlike the initial infrastructure and financing-focused decade, China's economy now emphasizes technology, innovation, and productivity.
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Industrial Policy: China’s central concept of industrial policy is "new quality productive forces," prioritizing these areas over low-cost labor.
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Global Leadership in Technology: China accounted for 54% of global industrial robot installations in 2024 (295,000 robots) and invested 3.93 trillion Yuan in R&D in 2025.
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Bilateral Trade Imbalance: Despite a record increase in Pakistan’s exports to China, the trade deficit widened, reaching approximately $19.53 billion in fiscal year 2025-26.
Recommendations:
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Revise Strategy: Pakistan should revise its strategy and align its priorities with China’s new economic direction.
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Build Capacity: Strengthen institutional capacity to meet the evolving demands of Chinese investment and cooperation.
Quotes:
“China was a sincere friend of Pakistan and had supported the country in every difficult situation.” - Federal Minister for Board of Investment (BOI) Qaiser Ahmed Sheikh
“It’s up to Pakistan to determine how much benefit it could derive from Chinese cooperation.” - Federal Minister Qaiser Ahmed Sheikh
Speakers:
- Federal Minister for BOI, Qaiser Ahmed Sheikh
- Chairperson of China Global Professional Technical Certification and former Chairperson of NAVTTC Pakistan, Gulmina Bilal