By Samia Khalid ISLAMABAD, Nov 08 (INP-WealthPK): Pakistan falls behind other Asian countries in terms of research and development (R&D) spending. The country is expanding its export destinations, concentrating on plurilateral and multilateral trade agreements in the South Asian Association for Regional Cooperation (SAARC) and Association of Southeast Asian Nations (ASEAN). As a result, diversifying export commodities and attempting to build a regional commercial block is in Pakistan's best interests. Economic infrastructure and collaboration will determine if this innovation leads to economic progress in Pakistan and across regional states. R&D is widely acknowledged as a key source of long-term economic stability and sustainable growth, not only by increasing competition in industries, markets, and macroeconomics, but also by encouraging production, consumption, and exports. Owing to this fact, countries make their economic policies based on past experiences, present needs, and visualising futuristic development programs. Innovation requires an appropriate number of financial resources for R&D to produce innovative patents. The graph below indicates that the Asian countries have made substantial contributions and strides in research, technology, and innovation to sustain their long-term economic development. Significant advances in research and technology have propelled China, Japan, South Korea, Russia, and Singapore to the forefront of innovation alongside other developed nations, according to the World Development Indicators 2017. According to the most recent data available for 2019, R&D expenditures increased by 2.23% for China, 3.19% for Japan, and 4.64% for South Korea (OECD, Year: 2019) but unfortunately it is not considered a primary factor by most countries, including Pakistan, when budgeting funds for their economic policies. R&D, therefore, remains a second or third preference in their economic policies. When a country's economic policy falls short due to unforeseeable events, financial resources are diverted to fill the voids and to achieve policy goals, putting R&D ventures on the back burner. Apparently, the greater the deviation in economic policy, the less emphasis on R&D. To stimulate investment in new technologies and innovation, there is a need to lower tariffs and taxes on R&D equipment, raw materials, and human resource development expenses. Data Source: World Development Indicators (WDI) A federal body charged with having centralised power with clear leadership under government oversight should be established or strengthened to guide and coordinate R&D policies through different organizations. The private sector, including both domestic and international companies, must be established or strengthened to spend more on R&D. The mode of interaction between the government and private sector should be improved to eliminate misunderstandings, ambiguity, and to increase trust and confidence. In an uncertain environment, the government should offer subsidies and tax incentives for R&D, grants for focused innovative activities, and patent grants to attract the private sector. The Asian countries should also develop their institutional and economic infrastructure to increase governmental effectiveness in R&D and the economic system's resistance to unexpected shocks so that the main sources of uncertainty can be detected like the recent COVID-19 pandemic in the present century. The Central Asia Regional Economic Cooperation (CAREC) is a partnership of 10 countries, including Pakistan, supported by six multilateral institutions that work to promote development through technological cooperation, resulting in accelerated growth and poverty reduction.