Pakistan’s economic stability depends on tackling population and climate risks: Aurangzeb

Muhammad Aurangzeb

Islamabad, November 17, 2025 – Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has said that Pakistan’s long-term economic progress is directly tied to how effectively the country responds to two major national challenges: rapid population growth and escalating climate vulnerability.

Speaking at the launch of the District Vulnerability Index for Pakistan (DVIP), developed by the Population Council, the minister emphasized that Pakistan’s path toward macroeconomic stability and sustained growth would remain incomplete without addressing the pressures created by demographic trends and climate impacts.

Aurangzeb noted that the consequences of high population growth continue to appear in widespread human development gaps, including child stunting, learning poverty, inadequate skill development, and a workforce unprepared for future economic demands.

He added that climate change is further intensifying risks across the country, exposing communities to extreme heat, floods, droughts, and environmental degradation. These effects are especially severe in districts already struggling with poverty, limited infrastructure, and restricted access to essential public services.

The finance minister reaffirmed the government’s commitment to integrating population and climate considerations into national policymaking, budgeting, and resource allocation. He said finance ministries worldwide are increasingly taking the lead on these cross-cutting issues, and Pakistan must do the same to ensure resilience and equitable development.

Aurangzeb praised the Population Council for producing a data-driven, research-backed District Vulnerability Index that provides decision-makers with actionable information across six thematic domains. The findings highlight geographic disparities and pinpoint highly vulnerable districts—particularly in Balochistan and Sindh—where social fragility and climate exposure combine to create compounded risks.

The minister also highlighted the rising pressure of rural-to-urban migration and the expansion of informal settlements. He said inadequate access to clean water, sanitation, and hygiene in these areas contributes to poor nutrition outcomes and persistent child stunting, further deepening socio-economic vulnerabilities.

Calling for more research on urban vulnerabilities, Aurangzeb stressed that Pakistan must adopt a forward-looking approach that recognizes the strong link between demographic dynamics and climate challenges. He said vulnerability metrics should become part of future planning and funding frameworks to ensure that resources reach the districts most in need.

He also acknowledged the support of development partners, including the UK Government and the FCDO, for their role in advancing governance reforms, revenue mobilization, and evidence-based policymaking.

The finance minister expressed confidence that the District Vulnerability Index will play a crucial role in shaping future policies aimed at improving resilience, promoting equity, and guiding national strategies aligned with Pakistan’s long-term development goals.