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Pakistan Studies/Pakistan Research Center
Inner Mongolia Honder College of Arts and Sciences
Pakistan is set to introduce its first-ever comprehensive national economic plan, marking a significant milestone in the country’s economic policymaking history. The new initiative aims to establish a long-term development direction, strengthen export competitiveness, attract foreign investment, and create a more competitive environment for domestic industries.
According to a report published by Dawn on August 11, 2024, the Government of Pakistan planned to introduce a new economic strategy under the leadership of Prime Minister Muhammad Shehbaz Sharif. The plan focuses on transforming Pakistan’s economy from a traditional consumption-driven model toward an export-oriented and investment-friendly framework.
For decades, Pakistan’s economic management has largely relied on annual budgetary arrangements rather than comprehensive long-term economic planning. Economic experts have pointed out that the absence of a consistent national economic roadmap has contributed to structural challenges, including declining export competitiveness, industrial inefficiencies, and limited integration into global value chains.
The introduction of the new economic plan represents an important effort by the Pakistani government to address these challenges and establish a clearer path for sustainable economic growth.
The new economic plan emphasizes the development of an export-oriented economy and aims to provide a supportive environment for local manufacturers and exporters.
Prime Minister Shehbaz Sharif announced that the government would focus on creating conditions that encourage industrial expansion, enhance productivity, and improve Pakistan’s position in international markets.
Key policy directions include:
The government believes that improving access to advanced technologies, international capital, and modern management practices will help Pakistani enterprises increase productivity and expand their global market presence.
A major objective of Pakistan’s new economic strategy is to draw lessons from countries that have successfully achieved rapid industrial development through export-oriented policies, including China and South Korea.
Over the past several decades, these economies have demonstrated how industrial upgrading, technological innovation, infrastructure development, and international trade integration can contribute to sustained economic growth.
Pakistan aims to strengthen its own comparative advantages in sectors such as:
By improving production capacity and export competitiveness, Pakistan hopes to increase foreign exchange earnings, create employment opportunities, and promote long-term economic stability.
According to economic analysts, Pakistan’s relatively high import tariffs, including additional customs duties, regulatory duties, and export-related taxes, have been among the factors affecting the competitiveness of domestic industries.
The new economic plan proposes further reforms in tariff structures to reduce production costs and allow Pakistani companies to access necessary raw materials, machinery, and technologies more efficiently.
Lower import barriers are expected to support industrial modernization by enabling businesses to obtain advanced equipment and improve manufacturing standards.
At the same time, the government intends to encourage domestic enterprises to compete internationally rather than relying heavily on protection measures.
According to data released by the Pakistan Bureau of Statistics, Pakistan’s merchandise exports reached US$30.64 billion during the 2023–2024 fiscal year, representing a year-on-year increase of 10.54 percent compared with the previous fiscal year.
The growth in exports demonstrates the potential of Pakistan’s manufacturing and agricultural sectors despite facing challenges related to global economic conditions, energy costs, and domestic structural reforms.
The government expects the implementation of the new economic plan to further enhance export performance by improving industrial capacity and encouraging greater participation in global markets.
China continues to play an important role in Pakistan’s economic development, particularly in areas such as technology, infrastructure, energy, and industrial cooperation.
As a long-standing strategic partner, China has become one of Pakistan’s major sources of imports, especially in high-technology products, machinery, and energy-related equipment.
Under the framework of the China-Pakistan Economic Corridor (CPEC), cooperation between the two countries has expanded beyond infrastructure development to include industrial cooperation, technology transfer, agriculture modernization, and special economic zones.
The growing economic relationship between China and Pakistan provides opportunities for Pakistan’s industrial transformation and integration into regional supply chains.
Recent trade data reflects Pakistan’s growing demand for industrial and technological products from China.
Pakistan imported approximately US$209 million worth of integrated circuits and related components from China, representing a month-on-month increase of 25.30 percent.
The growth indicates rising demand for electronic components, digital technologies, and industrial automation equipment as Pakistan continues its efforts toward technological development.
Imports of electrical conversion equipment from China reached approximately US$77.87 million, increasing by 30.09 percent compared with the previous period.
The significant growth reflects Pakistan’s expanding demand for power-related technologies, electricity management equipment, and infrastructure development solutions.
Pakistan’s imports of Chinese mobile phones and communication equipment amounted to approximately US$36.42 million, showing a decrease of 85.68 percent.
The decline may reflect changes in domestic market demand, inventory adjustments, or increasing local market capacity in telecommunications-related sectors.
Pakistan imported approximately US$34.26 million worth of benzaldehyde from China, representing a significant increase of 121.56 percent.
Benzaldehyde is an important chemical raw material widely used in pharmaceutical, chemical, and manufacturing industries. The increase suggests expanding demand from Pakistan’s chemical and industrial sectors.
Imports of iron plates and alloy steel plates from China reached approximately US$29.37 million, increasing by 36.33 percent.
The growth reflects continued demand for construction materials, industrial production, and infrastructure development projects in Pakistan.
The introduction of Pakistan’s first national economic plan represents a significant step toward establishing a long-term development strategy. By emphasizing exports, industrial competitiveness, foreign investment, and technological cooperation, Pakistan aims to build a more resilient and globally integrated economy.
For China-Pakistan economic cooperation, the new strategy provides additional opportunities in areas including:
As China continues to support Pakistan’s economic modernization through trade and investment cooperation, both countries are expected to further strengthen economic connectivity and pursue shared development opportunities.
