Exploring bold economic fix for Pakistan

Islamabad:Pakistan Institute of Development Economics (PIDE) held a high-level meeting with Prof David Daokui Li, Mansfield Freeman Chair Professor at Tsinghua University, China, to deliberate on Pakistan’s economic challenges and explore areas for strategic collaboration.

Dr Nasir Iqbal, Registrar and Acting Vice-Chancellor, who led the PIDE team presented the institute’s National Economic Transformation Plan, to Prof Li. The plan focuses on key pillars of exports, digital transformation, environment & climate change, energy & infrastructure, and equity & empowerment. These components together outline a roadmap for inclusive and sustainable development in Pakistan, said a statement.

Prof Li engaged the team in a wide-ranging discussion on Pakistan’s macroeconomic growth trajectory, fiscal imbalances, energy challenges, trade relations and the ongoing IMF programme. The PIDE team emphasised that low productivity remains a critical constraint to Pakistan’s economic development. Dr Nasir highlighted that addressing this issue through targeted technology transfer and capacity-building is essential for future growth. He further emphasised that engagement with China offers a strategic opportunity to overcome these constraints through mutual cooperation.

In response to Prof Li’s queries regarding short-term collaborative interventions, the PIDE team proposed a sectoral agenda for Pakistan-China cooperation. This included the auto industry (leveraging Chinese expertise to enhance production and technology), renewable energy (particularly solar), industrial development (expanding local manufacturing), agriculture (modern machinery and practices), the power sector (improved infrastructure and distribution), trade and connectivity and the establishment of joint research and development centres.

A shared vision emerged around developing an indigenous economic model for Pakistan that integrates social capital, equitable development and digital transformation, especially under the E-Pakistan initiative. Prof Li expressed strong support for this approach and acknowledged the relevance of the framework.