Pakistan needs to strengthen its institutional capacity in line with China’s changing priorities to secure greater economic benefits from bilateral cooperation. This recommendation was made in a policy paper, “Understanding China: China’s Economy and Industrial Policy,” launched by the China Desk of EMPAK Strategies. The report was launched with Federal Minister for the Board of Investment Qaiser Ahmed Sheikh as the chief guest.
The report said China’s 15th Five-Year Plan for 2026-2030 focuses on industrial and technological development, productive capacity and innovation, while the first decade of Pakistan-China economic cooperation revolved around infrastructure and financing. China has moved beyond that model, requiring Pakistan to revise its strategy and align its priorities with the new direction of the Chinese economy.
According to the report, the central concept of China’s industrial policy is “new quality productive forces,” which prioritizes technology, innovation and productivity instead of low-cost labour. China accounted for 54 percent of industrial robots installed worldwide in 2024, installing 295,000 robots. It spent 3.93 trillion yuan on research and development in 2025.
The report noted that despite a record increase in Pakistan’s exports to China, the bilateral trade imbalance continues to widen. During fiscal year 2025-26, Pakistan’s exports to China increased by around 10 percent to USD 2.67 billion, making China the second-largest market for Pakistani products after the United States. Meanwhile, imports from China rose 14 percent to approximately USD 22.2 billion. As a result, Pakistan’s bilateral trade deficit with China reached around USD 19.53 billion, increasing by approximately USD 2.4 billion in one year.
Addressing the launch ceremony, Federal Minister Qaiser Ahmed Sheikh said China is a sincere friend of Pakistan and has supported the country in every difficult situation. He said it was up to Pakistan to determine how much benefit it could derive from Chinese cooperation. He added that CPEC projects had suffered setbacks in the past, but the present government was providing better conditions and facilities to investors from China and other countries.
Chairperson of China Global Professional Technical Certification and former Chairperson of NAVTTC Pakistan Gulmina Bilal said China is prioritizing eight strategic sectors, including next-generation information technology, new energy, robotics, biomedicine, high-end equipment, aviation and aerospace. Six future industries, including quantum technology, biomanufacturing, hydrogen and fusion energy, brain-computer interfaces and 6G, are also being developed. Pakistan, she said, should focus on these sectors and prepare a workforce equipped with internationally competitive technical skills.
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