Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, 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” in Islamabad today, underscored that climate change and population growth remain the two most critical existential challenges for Pakistan.
He said that 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.
He acknowledged the leadership role played earlier in the year by the Dawn Media Group in building public discourse on climate change and noted that population must now be approached with the same seriousness.
The Minister stressed that Pakistan has long understood the “what” and the “why” of population challenges, and that the real task now lies in the “how” of implementation. Drawing parallels with global engagements on climate financing, he said that while technical ministries lead on policy, it is ultimately finance ministries that mainstream these issues through budgeting and planning. He expressed hope that the sessions over the next two days would collectively produce actionable pathways for implementation.
Senator 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. He said that 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 are already affecting growth, with recent flooding expected to shave 0.5 percent off GDP this year. He said population pressures similarly constrain real economic gains, as higher growth figures lose meaning if population expansion is not managed. He highlighted that real progress hinges on harnessing the population dividend, particularly the youth, who make up 64 percent of the population. He emphasised that economic transformation will come not from government jobs but from freelancers, IT professionals and young innovators leading Pakistan’s digital economy. In this context, he pointed to advancements in 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 drew attention to the severe challenge of stunting, affecting 40 percent 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 is a proven driver of economic development. He highlighted rising urbanisation and the need to focus on urban poor communities, where failures in water, sanitation and hygiene significantly contribute to stunting. Addressing these issues, he said, requires comprehensive, cross-sectoral action, including improved birth spacing, nutrition, sanitation and clean water.
Senator Aurangzeb outlined the financing dimension of population and climate-related reforms. He acknowledged 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. He said it is now Pakistan’s responsibility to develop investable and bankable projects to fully utilise this support.
Emphasising self-reliance, the Minister said Pakistan cannot repeatedly seek international appeals or borrow for every challenge. 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. He stressed that resources must be repurposed for national priorities and that upcoming NFC discussions will be based on consensus, with population as a key component of horizontal distribution.
He 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. He expressed gratitude for the support of the British Asian Trust and the technical assistance provided by the FCDO in this initiative.
Concluding, Senator Muhammad Aurangzeb thanked the Dawn Media Group for convening the Pakistan Population Summit 2025 and expressed appreciation for the participation of practitioners and subject-matter experts. He reaffirmed the government’s commitment to be guided by expert insights as Pakistan works to address its population and climate challenges in pursuit of sustainable, inclusive growth.
