FinMin flags population growth as major threat to $3tr Economic Vision

July 11, 2025 (MLN): The country’s ambitions to become a $3 trillion economy by 2047 will remain out of reach unless urgent action is taken to address the twin existential challenges of population growth and climate change, Finance Minister, Senator Muhammad Aurangzeb, warned on Thursday. 

Speaking at a high-level event in Islamabad to mark World Population Day, Aurangzeb said that while the government is pursuing a broad-based reform agenda under Prime Minister Shehbaz Sharif, spanning taxation, energy, state-owned enterprises, and privatisation, sustainable growth requires confronting deeper structural issues.

With Pakistan’s population growing at 2.55% annually and nearly 40% of children under five suffering from stunted growth, he warned that the country’s future leadership is already at stake.

“Addressing stunting and learning poverty demands an integrated, end-to-end approach, nutrition, sanitation, clean water, birth spacing, and awareness,” he said.

Aurangzeb also emphasized empowering women, noting that inclusive workforce participation is essential to Pakistan’s long-term development. “We must invest meaningfully in education and skills, especially for girls, to build a productive economy,” he said.

Turning to fiscal matters, the Finance Minister backed calls for Pakistan’s population to be a central factor in National Finance Commission (NFC) Award allocations, alongside broader human development indices, to guide equitable distribution of resources.

Highlighting Pakistan’s development budgets, Rs1 trillion federally and Rs4.2tr including provinces this year, Aurangzeb argued that “the real challenge is not the availability of funds, but their optimal allocation and prioritization,” urging a unified national approach over fragmented federal-provincial planning.

He also called for a shift in how donor funds are directed. While infrastructure has historically dominated international support, he said it is critical to channel these resources toward human capital, particularly in health, education, and population planning.

Referencing Pakistan’s $20 billion, 10-year Country Partnership Framework with the World Bank, Aurangzeb noted that roughly one-third of the funding, or about $600–700 million annually, will target population and climate-related measures.

He stressed that these must go beyond symbolic gestures like tax relief on contraceptives to ensure impactful, sustainable investments.

The minister concluded by reaffirming the government’s commitment to tackling Pakistan’s population challenge head-on, leveraging both domestic and international partnerships to build “a healthier, more productive nation.”

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