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Modernization gateway

China's 15th Five-Year Plan will spur Pakistan's development by giving renewed momentum to the CPEC Phase II

By MUHAMMAD ASIF NOOR | China Daily Global | Updated: 2025-12-02 08:24
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WANG XIAOYING/CHINA DAILY

As the United Nations marks its 80th anniversary, the global community faces a period of heightened uncertainty. Climate pressures, uneven economic recovery and widening development gaps continue to challenge the foundations of global stability. In this environment, the Recommendations of the 20th Central Committee of the Communist Party of China for Formulating the 15th Five-Year Plan (2026-30)for National Economic and Social Development offer a structured pathway for high-quality development. Together with the Global Development Initiative, the Global Security Initiative, the Global Civilization Initiative and the Global Governance Initiative, China's 15th Five-Year Plan will provide a coherent framework that links China's modernization with global sustainable development.

The recommendations emphasize innovation, industrial transformation, ecological conservation and high-quality development. They build on the achievements of the 14th Five-Year Plan (2021-25).China increased its R&D spending to 2.68 percent of its GDP in 2024.Its installed renewable energy capacity more than doubled from 2020 levels, reaching 2.17 billion kilowatts by July 2025, with one in three kilowatt-hours of electricity nationwide now derived from green sources. These foundations strengthen China's role as a major driver of global economic growth and green development. Projections indicate that China will sustain annual GDP expansion at 4.5 to 5 percent through 2030, contributing around 30 percent to global growth in this period.

China's development direction in the next five years can shed light on the development of other Global South countries, where development pressures are intensifying. Countries in Asia, Africa and Latin America face growing climate risks, high adaptation costs, and limited financing options for clean energy and industrial upgrading. China's capacity to supply green technology, digital infrastructure and industrial cooperation provides a critical resource at a time when many nations are struggling to maintain sustainable growth. For instance, in terms of Pakistan, China's five-year plans hold clear and practical relevance. Pakistan-China ties are anchored in mutual trust and sustained cooperation. Bilateral trade reached $16.7 billion in the first eight months of 2025. China's exports to Pakistan totaled $20.2 billion in 2024, marking a year-on-year rise of 17 percent.

Additionally, the China-Pakistan Economic Corridor remains one of the most important platforms for this cooperation. Phase I of the CPEC has delivered what once seemed unimaginable. In energy, 17 major projects with a combined capacity of 8,904 megawatts have been completed, supported by two coal mines and the country's first 660 kilovolt high-voltage direct current transmission line, representing nearly $18 billion of investment. Transport networks and ports have strengthened domestic and regional connectivity. The transition to the CPEC Phase II reflects Pakistan's shifting development priorities. At the 14th Joint Cooperation Committee meeting of the CPEC in September, both countries agreed to focus on growth, innovation, green development, improved livelihoods and regional connectivity.

The alignment between China's global cooperation during the 15th Five-Year Plan period and CPEC Phase II will be particularly strong in the areas of industrial development and technology cooperation. China's focus on new quality productive forces, including artificial intelligence, advanced semiconductors, new energy vehicles and digital infrastructure, opens space for joint manufacturing and industrial relocation to Pakistan. Economic zones such as the Rashakai and Dhabeji special economic zones and Allama Iqbal Industrial City are already attracting Chinese investment in electronics, machinery and green technologies. Rashakai has created more than 28,000 jobs and trained more than 9,000 young Pakistanis in solar installation, electric vehicle systems and modern machinery, supporting Pakistan's efforts toward higher value-added production.

Renewable energy cooperation has also intensified. Pakistan imported almost the same amount as the previous year's record volume of Chinese solar panels in the first nine months of 2025. Solar power now provides nearly 25 percent of Pakistan's utility electricity. CPEC projects such as the Quaide-Azam Solar Park are expanding access to clean energy in the provinces most affected by energy shortage. China's technological edge on ultra-high voltage transmission, battery storage and green hydrogen can provide references for Pakistan to achieve its goal of reaching 60 percent renewable energy by 2030.

China's global initiatives reinforce these gains. The Global Development Initiative supports poverty reduction, digital inclusion and agricultural modernization. It has mobilized more than $4 billion through the Global Development and South-South Cooperation Fund and supported work with more than 20 international organizations. Projects under the framework of the Belt and Road Initiative across the Global South helped lift almost 40 million people out of poverty from 2013 to 2023.

The Global Security Initiative provides an enabling environment for sustainable development. The Global Civilization Initiative supports people-to-people exchanges that deepen mutual understanding. And the Global Governance Initiative adds broader institutional strength, advocates greater representation of developing countries in international organizations and supports transparent, development-oriented multilateral frameworks.

The global implications of China's 15th Five-Year Plan extend beyond bilateral partnerships. China installed around 212 gigawatts of solar power in the first half of 2025, a pace that is expected to substantially reduce global clean technology costs. This will help emerging economies deploy renewable energy in an efficient and sustainable way and reduce climate-related losses. For Pakistan, these trends support the growth of green industries that are expected to generate more annual exports through the innovation corridor.

As the world confronts persistent development challenges, China's 15th Five-Year Plan will offer a clear and structured response that combines domestic priorities with global responsibility. It will strengthen the foundations of China's modernization while supporting partners in building industrial capacity, green energy systems and digital infrastructure. For Pakistan, the alignment between its own national development strategy and China's planning direction provides a strong basis for deeper cooperation. Together, both countries can help shape a more balanced, sustainable and inclusive global development landscape.

The author is the director of the Institute of Peace and Diplomatic Studies, Pakistan. The author contributed this article to China Watch, a think tank powered by China Daily.

The views do not necessarily reflect those of China Daily.

Contact the editor at editor@chinawatch.cn.

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