FM flags population, climate as key economic risks

November 17, 2025 (MLN): Pakistan’s long-term economic growth will depend on addressing rapid population growth and rising climate vulnerability, Federal Minister for Finance Senator Muhammad Aurangzeb said.

These are the critical challenges for sustainable development and human capital readiness.

Speaking at the release of the District Vulnerability Index for Pakistan (DVIP) by the Population Council, the Minister noted that Pakistan is progressing toward macroeconomic stability.

He added that real development gains require targeted action on human development pressures and climate risks, particularly in districts already facing poverty, weak infrastructure, and limited public services.

Senator Aurangzeb emphasized that population momentum is closely linked to high rates of child stunting, learning poverty, and workforce preparedness.

Meanwhile, climate change continues to expose vulnerable districts, especially in Balochistan and Sindh, to heatwaves, floods, droughts, and environmental stress.

He stated that the Ministry of Finance is working to integrate population and climate priorities into budgeting and national planning, using vulnerability metrics to guide resource allocation and ensure equitable development outcomes.

The Minister also acknowledged the UK Government and the Foreign, Commonwealth & Development Office (FCDO) for their support in developing the DVIP, describing it as a data-driven tool to support resilience and informed policymaking.

Aligning fiscal planning with population and climate vulnerabilities is essential for Pakistan to achieve sustainable growth, strengthen human development indicators, and mitigate future economic shocks caused by environmental and demographic pressures.

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