By Moaaz Manzoor

China’s 15th Five-Year Plan for 2026-30, which places scientific and technological self-reliance at the center of national development, offers important insights for Pakistan: sustained investment in research and development (R&D) is essential for improving productivity, strengthening industrial competitiveness and reducing dependence on imported technology.

The policy direction was outlined during China’s annual legislative session, where the National Development and Reform Commission submitted its report on the implementation of the 2025 plan and the draft plan for 2026 to the National People’s Congress.

The official documents state that 2026 marks the beginning of the 15th Five-Year Plan period and call for high-quality development driven by stronger domestic demand, improved supply capacity and the cultivation of new quality productive forces.

A central feature of the plan is the emphasis on technological self-reliance through the integrated development of education, innovation and human resources. The framework highlights the importance of strengthening basic research, improving coordination among national laboratories and major science and technology programs, and accelerating breakthroughs in key technologies.

China’s implementation report indicates that the strategy is already producing measurable results. The country’s total R&D spending rose 9.1% in real terms in 2025 to reach 2.8% of GDP, while spending on basic research increased by 11.1%. China now leads globally in research and application in fields such as artificial intelligence, biomedicine, robotics and quantum technology, and has recorded further progress in the independent development of semiconductor chips.

The industrial impact of this innovation drive is also visible in manufacturing output. According to the report, the value added of enterprises above designated size in high-tech manufacturing and equipment manufacturing grew by 9.4% and 9.2%, respectively.

For Pakistan, the significance lies not only in the scale of China’s technological push but also in the structure of its policy approach. China’s development framework links research funding, institutional coordination, industrial application and commercialization within a single strategy — a combination that has helped translate innovation into industrial growth.

Professor of Economics Dr Nasir Iqbal of the Pakistan Institute of Development Economics told Wealth Pakistan that China’s five-year planning framework provides a long-term policy direction that goes beyond short-term economic management. He said the plan reflects a strategic shift from traditional output-driven expansion toward a productivity model based on innovation, technology and human capital.

He noted that China’s experience also demonstrates the importance of aligning institutions around clearly defined national goals. Once priorities are established, different levels of government, research institutions and industry actors coordinate their efforts toward implementation, creating continuity in development policies.

Dr Hassan Daud Butt, former Project Director of the China-Pakistan Economic Corridor and Senior Advisor at the China Energy Engineering Corporation, said China’s 15th Five-Year Plan illustrates how sustained state support for innovation can gradually transform an economy from scale-based growth to technology-led development.

He said China’s focus on artificial intelligence, advanced manufacturing, high-tech industry and green technologies highlights the importance of building strong domestic research capabilities. For Pakistan, he said, strengthening its R&D base and promoting closer collaboration between academia and industry will be essential for developing competitive industries and reducing reliance on imported technologies.

Research Fellow Asad Ullah Khan at the China Pakistan Study Center at the Institute of Strategic Studies Islamabad said China’s development model underscores the role of sustained public investment, research institutions and technology partnerships in building a strong innovation ecosystem.

He said Pakistan could draw practical lessons by expanding support for indigenous innovation, encouraging technology startups and strengthening collaboration between universities, industry and government. Initiatives such as the National Aerospace Science and Technology Parks established in different cities by the Pakistan Air Force demonstrate how local platforms can contribute to building a more self-reliant technological base.

China’s official documents suggest that innovation is no longer treated as a peripheral policy area but as a strategic capability directly linked to industrial upgrading and long-term economic resilience. For Pakistan, the message is clear: if the country aims to improve productivity, strengthen industrial competitiveness and reduce technological dependence, research and development will need to move from the margins of policy to the center of economic strategy.

Credit: INP-WealthPk