Islamabad, December 1, 2025 — Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has warned that Pakistan cannot unlock its long-term economic potential without confronting two of its most pressing threats: climate change and rapid population growth.
Speaking at a session titled “Accelerating Economic Growth for a More Optimal Balance” on the opening day of the Pakistan Population Summit 2025, the minister stressed that these challenges pose existential risks to sustainable development.
Aurangzeb noted that although Pakistan is making progress in stabilizing the economy and shifting toward a growth trajectory, projections that envision the country becoming a three-trillion-dollar economy by 2047 will remain unattainable unless population and climate vulnerabilities are addressed head-on. He acknowledged the Dawn Media Group’s earlier role in advancing national debate on climate issues and called for population matters to receive equal urgency.
He emphasized that Pakistan already understands the scale and nature of its population-related challenges; what is now required is a clear implementation framework. Drawing a comparison with global climate financing, he said technical ministries set the policy direction, but finance ministries are responsible for integrating these priorities into budgets and development planning. He expressed optimism that the two-day summit would result in actionable, collaborative strategies.
Senator Aurangzeb also welcomed the inclusion of religious perspectives in the dialogue, appreciating the contributions of scholars who have dispelled misconceptions around population management. He said the country must move toward evidence-based decisions, particularly when credible consensus is emerging.
Discussing economic vulnerabilities, he revealed that climate-induced flooding is expected to reduce GDP growth by 0.5 percent this year. Meanwhile, unchecked population growth continues to dilute economic gains, with progress dependent on enabling the country’s youthful demographic — 64 percent of the population — to drive innovation and digital transformation. He highlighted emerging sectors such as freelancing, IT, blockchain, AI, and Web3, calling for a regulatory framework that supports young digital entrepreneurs.
The minister also termed Pakistan’s 40 percent child stunting rate as “intellectual poverty,” warning that it undermines future workforce productivity. He stressed the need to urgently reduce learning poverty, particularly for girls, whose participation in the workforce is crucial for sustained economic expansion. Rapid urbanization, he said, has made access to clean water, sanitation, and hygiene central to solving stunting and improving overall human development.
Aurangzeb detailed the financial dimension of reform efforts, acknowledging strong support from global partners, including the World Bank’s long-term commitment of $2 billion annually under its Country Partnership Framework. Priority areas of the framework include reducing stunting, improving foundational learning, and strengthening climate resilience. He urged federal and provincial governments to prepare bankable projects to effectively utilize available financing.
Calling for greater self-reliance, he said Pakistan cannot continue appealing for international support during crises, noting that recent flood relief operations were financed domestically through provincial and federal collaboration. Population dynamics, he added, will be a core part of upcoming NFC Award discussions, shaping the future distribution formula.
He underscored the importance of public-private partnerships and outcome-based financing, citing initiatives such as the Social Impact Financing Framework and the forthcoming Pakistan Skills Impact Bond, designed to expand youth skills development. He expressed gratitude to the British Asian Trust and the FCDO for their technical assistance.
Concluding his remarks, Senator Aurangzeb thanked the Dawn Media Group for organizing the Population Summit 2025 and reaffirmed the government’s commitment to aligning policy actions with expert recommendations for sustainable, inclusive growth.