2. OUTLINE
Comparison of Pakistan & China Economical Policy
Potential of Comparison & Differences
China’s Economy Role in Pakistan
Facts about Pakistani Economy
Strengths & Weaknesses Evaluation
Policy Models
Policy Analysis
Recommendations
Conclusion
3. ON AUGUST 14, 1947, THE ISLAMIC
REPUBLIC OF PAKISTAN WAS
ESTABLISHED, AND ON OCTOBER 1,
1949, THE PEOPLE'S REPUBLIC OF
CHINA
4. •China has become a worldwide economic powerhouse and lifted millions out of poverty by
emphasizing technology improvement, vast infrastructure construction, and growth focused on
exports. However, Pakistan's economic strategies have focused on resolving the country's energy
restriction, underdevelopment, and unemployment problems.
•Working together with China, especially under the CPEC framework, has been a crucial aspect of
Pakistan's plan to increase economic growth and fill in significant infrastructure gaps.
COMPARISON OF CHINA & PAKISTAN’S ECONOMICAL POLICY
5. China’s Economic Policies
State Led Development:
China has adopted a state-led development model in which economic planning and execution are
heavily influenced by the government.
Market Reforms:
China has maintained a socialist political system while adopting market oriented reforms that benefit
foreign investment & private sector.
6. Infrastructure Investment:
To promote economic growth, the Chinese government has made
significant investments in transportation, energy, and technology-related
infrastructure projects.
Currency Management:
China is charged with purposely maintaining the value of the yuan at a low
level in order to lower the cost of its exports and gain a trade advantage.
Critics argue this can lead to global trade imbalances and tensions with
other countries.
7. Mixed Economy: The economy of Pakistan is a mix of socialism and capitalism.
Despite efforts to free up the economy, the state has always maintained
significant ownership in key sectors of the economy.
Economic Challenges: Pakistan faces various economic challenges, including
financial shortfalls, inflation, and a large informal economy.
PAKISTAN’S ECONOMIC POLICIES
8. Foreign investment and aid: Pakistan economic approaches aim to attract foreign
capital to help addressing it’s balance of payment issues.
Focus on agriculture: Development in agriculture is a major policy goal in Pakistan in
order to reduce poverty and promote economic growth.
9. INFRASTRUCTURE DEVELOPMENT
Both countries recognize the
importance of infrastructure for
economic growth and development.
FOREIGN RELATIONS
Both countries engage in economic
partnerships with other nations, with
China being a major player in global
trade and Pakistan seeking foreign
aid and investment.
POTENTIAL FOR COMPARISON
10. CHINA
China has one of the world's largest economies.
China follows a socialist system with a one-party
rule.
China is a global economic powerhouse with a
strong emphasis on exports.
PAKISTAN
Pakistan's economy is smaller and faces different
challenges.
Pakistan has a multi-party democratic system.
Pakistan's economy is not as export-driven.
DIFFERENCES
11. CHINA’S ECONOMIC ROLE IN PAKISTAN
China gave Pakistan financial support and guidance for the construction of its road
network, enhancing north-south connectivity and boosting the effectiveness of
commodities transportation from Karachi to Gilgit-Baltistan.
Early harvest projects from CPEC greatly expanded Pakistan's capacity to generate
electricity, removing supply-side limitations that frequently caused blackouts.
12. By 2025, the construction of the CPEC is expected to be nearly finished,
the industrial system to be roughly complete, the major economic
functions to be implemented in a holistic manner the standard of living
for people living along the CPEC to be greatly improved, the
development of the regional economy to be more balanced.
By 2030, the CPEC aims to be fully implemented, have established
internal mechanisms for long-term economic growth, built the CPEC's
role in promoting economic growth in both Central and South Asia, and
see South Asia develop into an international economic zone with a
global impact.
13. FACTS ABOUT PAKISTANI ECONOMY
Pakistan is the sixth most populous country in the world.
With an estimated population of 170 million people.
Pakistan's population is growing at a pace of 2.05 percent annually.
Pakistan is expected to become the fourth largest country by 2050.
The population of working age is 121.01 million.
It is said that Pakistan's urban population has increased by more than seven times since 1950.
14. Trade Relations:
China: China's economic policies helped it become a worldwide economic powerhouse by promoting international trade.
Pakistan: Trade relations between the two nations have improved as a result of China and Pakistan's growing economic
connections, which have opened up new markets for Pakistani goods and services.
Technology Advancements:
China: Collaboration with China provides opportunities for technology transfer, which can contribute to the technological
advancement of Pakistan.
Pakistan: It is possible to boost productivity and competitiveness in a number of industries by gaining access to Chinese
technology and knowledge.
STRENGTHS OF CHINA & PAKISTAN EVALUATION
15. Job Creation:
China: Economic policies that focus on industrialization and development projects have the
potential to create jobs, both directly and indirectly.
Pakistan: Pakistan's unemployment issues may be resolved by creating jobs through the joint
projects being implemented under the CPEC.
16. Policy Implementation Challenges:
China: Implementation of policies at such a large scale may face administrative and governance challenges.
Pakistan: Adopting and effectively implementing policies inspired by the Chinese model may be challenging due to
differences in political, cultural, and institutional contexts.
Debt Dependency:
China: Critics argue that China's economic policies, especially regarding loans and investments in developing countries,
may lead to debt dependency and financial risks.
Pakistan: China's large-scale project funding has sparked questions about Pakistan's ability to repay its debt, which might
lead to long-term economic difficulties.
WEAKNESSES OF CHINA & PAKISTAN EVALUATION
17. Socioeconomic Inequality:
China: China's economy is growing quickly, yet there are still issues with regional and wealth
inequality.
Pakistan: Economists working together might not share the advantages equally, which would
increase Pakistan's already-existing socioeconomic gap.
18. POLICY MODELS
China
Institutional Approach: The institutional approach is somewhat relevant in China because of the
country's strong economic planning and attempts to intervene.
Rational Policy-making Model: China's emphasis on long-term planning and efficiency aligns with
elements of the rational policy-making model.
Systems Model: The continuous flow of policies and their impact on the economic environment in
China can be understood using the systems model.
19. PAKISTAN
Group Theory: The group theory is somewhat applicable in Pakistan since political factions
and interest groups have an important impact on economic policies.
Elite Theory: A number of elites may have an impact on Pakistan's economic policies, hence
the idea can be slightly applied there.
Public Choice Theory: The behavior of individual actors in political and economic decision-
making in Pakistan may align with aspects of public choice theory.
20. COST-BENEFIT ANALYSIS
Compare the financial advantages to the
disadvantages, taking into account the debt load
as well as any possible social and environmental
outcomes.
PUBLIC PARTICIPATION
To make sure that the interests of the people are
fairly reflected, evaluate the degree of public
involvement in the policy-making process.
POLICY ANALYSIS
21. POLICY HARMONY
Assess how well the economic policies align with
the larger objectives of national development.
LONG-TERM IMPACT
Evaluate how economic policies will affect
sustainable development over the long run,
taking into account the social, economic, and
environmental aspects.
22. FOR CHINA
Social Welfare
Environmental Stability
Changes in Financial Industry
FOR PAKISTAN
Education & Skill Development
Governance and Anti-Corruption Measures
Infrastructure Development
RECOMMENDATIONS
23. In conclusion, there are advantages to Pakistan-China economic cooperation, but there are drawbacks
as well that should be carefully considered. A detailed examination of the policies should be part of the
evaluation, taking into account how they will affect the overall well-being and the long-term sustainable
development of both nations.
