FinMin urges global alliance for fair trade, financial representation

March 26, 2025 (MLN): Developing countries, including Pakistan, should form a global alliance to demand fair trade rules and better representation in international financial institutions.

This was said by Finance Minister Muhammad Aurangzeb while addressing the session titled ‘Inclusive Globalization That Benefits All – Pathways and Actions’ at the Boao Forum for Asia Annual Conference 2025, held in Boao, Hainan Province, China.

He stressed that these alliances are necessary to combat the disproportionate tariffs and trade restrictions that hinder the integration of developing economies into global markets.

He further emphasized the need for a globalization model that promotes fair trade, sustainable development, and an equitable financial system, according to the press release issued today.

Aurangzeb outlined the importance of multilateral cooperation to build a sustainable and innovation-driven global economy.

He urged governments and international institutions to establish global AI and FinTech funds to support digital inclusion in developing economies.

He also called on the G20 and the International Monetary Fund (IMF) to restructure the sovereign debt system to achieve debt relief and financial justice, warning that debt crises hinder economic growth and must be prevented.

The finance minister stressed that sustainability should be a fundamental principle in globalization policies.

He called for the integration of environmental justice, adequate climate finance, and facilitated technology transfer to support sustainable development in developing economies.

He further advocated for fair market access, enhanced regional connectivity, and strong multilateral cooperation to ensure an inclusive global economy.

Aurangzeb underscored the need to eliminate unfair trade practices and market access barriers that hinder the participation of developing countries in global trade.

“An inclusive global economy is a necessity, not a choice,” he stated.

He noted that developing countries face higher tariffs and trade restrictions that prevent their full integration into the global economy.

Aurangzeb reiterated that a balanced globalization model is essential for a shared future. “The time for speeches is over; practical steps must now be taken,” he said.

He stressed the need for an economic framework that provides opportunities for growth and prosperity to all nations.

He pointed out that Pakistan faces persistent trade imbalances, external debt pressure, and limited financial access.

However, initiatives such as the Special Investment Facilitation Council (SIFC) and the China-Pakistan Economic Corridor (CPEC) have enhanced the country’s trade potential.

He pointed out that Pakistan’s textile and agricultural sectors—key drivers of its economy—face significant challenges due to protectionist policies in developed countries and non-tariff barriers that limit their access to Western markets.

Addressing the issue of financial inequality, Senator Aurangzeb stressed the need for debt relief and financial justice through restructuring sovereign debt mechanisms to prevent cyclical debt crises, which are impeding the economic growth of many emerging economies, including Pakistan.

He highlighted that global debt has soared past $100 trillion, with over 60% of low-income countries at risk of debt distress, diverting resources from critical social and economic investments.

He called for reforms in international financial institutions to offer developing economies greater financial flexibility and sustainable debt relief mechanisms.

The Minister emphasized the transformative potential of technology in bridging global disparities.

He called on governments and international bodies to establish global AI and fintech funds to support digital inclusion in developing economies.

While Pakistan has initiated the Digital Pakistan program, there is a need for stronger international collaboration in artificial intelligence (AI), fintech, and e-commerce to empower small and medium enterprises (SMEs) and drive inclusive economic participation in the country.

Climate change, the Minister stressed, must be central to any discussion of globalization. Developing nations contribute less than 10% of global carbon emissions yet suffer disproportionately from the consequences of climate disasters.

Pakistan, despite contributing less than 1% of global carbon emissions, is one of the world’s most climate-vulnerable countries.

The devastating floods of 2022 inflicted $30 billion in damages and displaced 33 million people.

Pakistan continues to advocate for urgent climate financing, green technology transfers, and fair global climate policies to support climate resilience in developing economies.

Senator Aurangzeb concluded his remarks by calling for a more sustainable approach to globalization.

Developed nations, he urged, must fulfill their $100bn annual climate finance commitments and prioritize renewable energy cooperation to help emerging markets transition to low-carbon economies.

Furthermore, carbon-intensive trade restrictions that penalize export-dependent economies in the Global South must be reduced.

He also called for reforms in the global financial architecture, including the enhancement of Special Drawing Rights (SDRs) allocations and the promotion of green bonds and blended finance models to attract private-sector investment in emerging markets.

The Minister reiterated that the future of globalization must be one of inclusivity, fairness, and shared prosperity. The time to act, he emphasized, is now.

Copyright Mettis Link News