Experts from Pakistani think-tanks and China on Friday participated in a seminar to discuss potential ways to enhance collaboration between the two countries in multiple fields, particularly economic growth and connectivity.
The event, titled “Pakistan Economy & Growth: Learning from Chinese Experience,” was organized by the Pakistan Institute of Development Economics (PIDE), marking a significant step towards strengthening economic ties between China and Pakistan.
The seminar was aimed at facilitating an exchange of knowledge and optimum practices between the two nations, according to a news release.
In her opening remarks, PIDE’s Pro VC Dr Durre Nayab emphasized the importance of such interactions in fostering growth and development. She highlighted the need to adopt strategies that have contributed to China’s economic success, tailored to Pakistan’s unique context.
The event featured a detailed presentation by Dr. Nadeem ul Haque, Vice Chancellor of PIDE, who discussed the critical need for policy reforms, investment in human capital, and fostering an innovation-driven economy.
He advocated for learning from China’s economic transformation, which provides insights into growth strategies, infrastructure development, industrialization, and policy reforms applicable to Pakistan.
Dr Haque said Pakistan was poised for a new era of economic growth and regional connectivity through the dynamic framework of the China-Pakistan Economic Corridor (CPEC).
He noted that with a young, burgeoning population and a rapidly expanding middle class, Pakistan presented a compelling case for significant investment and development.
Pakistan’s demographic profile, with a median age of just 20.6 years and a labor force expanding by over 3 million annually, was a cornerstone of its growth potential.
Dr Haque projected that a growth rate of 7-8% per annum was achievable with strategic reforms, positioning Pakistan as a future market leader. “By 2030, Pakistan is expected to become the 7th largest consumer market globally, underscoring its vast potential.”
He asserted that CPEC was not merely an infrastructure project but a framework for regional connectivity. “It aims to enhance geographical linkages through people-to-people contact, academic and cultural exchanges, and robust trade and business flows.”
The initiative promises to transform Pakistan into a logistical hub, driving industrial, agricultural, and financial cooperation, along with human resource development and tourism.
Dr Haque also pointed out that Pakistan was undergoing significant reforms to create a more investment-friendly environment. Moving from a permission-based to a rule-based economy, the government was addressing regulatory challenges that have historically hampered growth.
Beyond infrastructure, he said CPEC opened up diverse opportunities for investment, under which leading global corporations have already established a strong presence in Pakistan, collectively investing over $1.5 billion and generating $3 billion in revenues.
The Special Economic Zones (SEZs) under CPEC offer further prospects for investment, particularly in the technology and manufacturing sectors.
D. Haque highlighted that Pakistan’s burgeoning market for electric vehicles (EVs) represents a significant growth area. With over 50% of households owning motorbikes and a growing demand for cars, the market for 2- and 4-wheel EVs is set to expand rapidly. “Initiatives to promote EVs and public transport in Islamabad are already underway, positioning Pakistan strategically as a hub for EV production for both local and export markets.”
By learning from China, Dr Haque said Pakistan could develop strategies to overcome economic challenges and achieve sustainable growth.
The lead expert from the Chinese delegation provided invaluable insights into the Chinese economic model, emphasizing lessons that Pakistan could leverage for its own growth.
He elaborated on China’s strategic investments in infrastructure, technology, and education, demonstrating how similar initiatives could yield significant benefits for Pakistan.