Finance minister Muhammad Aurangzeb said on Monday climate change and population growth remained the two “most critical existential challenges” for Pakistan.
The minister passed these remarks while chairing a session titled ‘Accelerating Economic Growth for a More Optimal Balance’ on the opening day of the two-day ‘The Pakistan Population Summit 2025’ hosted by Dawn Media Group in Islamabad, according to a statement from the Finance Division.
“While the government continues to focus on economic recovery and the transition from stabilisation to growth, the country’s long-term potential envisioned in various studies projecting Pakistan as a three-trillion-dollar economy by 2047, cannot be realised without addressing these core issues,” Aurangzeb was quoted as saying in the statement.
The minister stressed that Pakistan had long understood the “what” and the “why” of population challenges, and that the real task lied in the “how” of implementation.
Floods expected to cut 0.5% off Pakistan’s GDP: Aurangzeb highlights climate risks
Drawing parallels with global engagements on climate financing, he said, “while technical ministries lead on policy, it is ultimately finance ministries that mainstream these issues through budgeting and planning”.
Aurangzeb welcomed the inclusion of sensitive yet essential dimensions such as religious perspectives and appreciated contributions by leading religious scholars who have clarified misconceptions around population management.
“Pakistan cannot shy away from action, especially when evidence-based guidance is available and consensus is emerging among credible voices.”
Referring to economic challenges, the minister reiterated that climate impacts were already affecting growth, with recent flooding expected to shave 0.5% off gross domestic product (GDP) this year.
He was of the view that population pressures similarly constrain real economic gains, as higher growth figures lose meaning if population expansion is not managed.
“Real progress hinges on harnessing the population dividend, particularly the youth, who make up 64% of the population.”
The finance minister emphasised that economic transformation would come not from government jobs but from freelancers, IT professionals, and young innovators leading Pakistan’s digital economy.
He pointed to advancements in artificial intelligence (AI), blockchain, Web 3.0 and the rising participation of Pakistanis in global crypto activity, and underscored the importance of a regulatory environment that “protects and enables young digital talent”.
The minister also drew attention to the severe challenge of stunting, affecting 40% of Pakistani children under five, and termed it “intellectual poverty” that undermines future workforce and leadership.
He also stressed the urgency of reducing learning poverty, especially for girls, noting that female participation in the workforce was a proven driver of economic development.
Aurangzeb highlighted rising urbanisation and the need to focus on urban poor communities, where failures in water, sanitation and hygiene significantly contribute to stunting. Addressing the issues, he added, required comprehensive, cross-sectoral action, including improved birth spacing, nutrition, sanitation and clean water.
He outlined the financing dimension of population and climate-related reforms, acknowledging strong multilateral support, including the World Bank’s ten-year, two-billion-dollar annual commitment under its Country Partnership Framework, where key priority areas are linked to outcomes in reducing child stunting, addressing learning poverty at the foundation level and climate change resilience.
“It is now Pakistan’s responsibility to develop investable and bankable projects to fully utilise this support.”
Emphasising self-reliance, the minister said Pakistan could not repeatedly seek international appeals or borrow for every challenge.
FinMin Aurangzeb says debt servicing costs dropping amid policy rate cut
The federal government and provinces have jointly funded this year’s rescue and relief operations for flooding without external appeals, demonstrating capacity for self-financing, according to Aurangzeb.**
He stressed that resources must be repurposed for national priorities and that upcoming National Finance Commission (NFC) discussions would be based on consensus, with population as a key component of horizontal distribution.
The finance minister highlighted the importance of public-private partnerships for scaling impact and said future financing must be linked to outcomes rather than just expenditure tracking.
He cited the Social Impact Financing Framework and the forthcoming Pakistan Skills Impact Bond as major steps toward performance-based development financing, particularly for upskilling Pakistan’s youth.
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