Finance

Pakistan’s Growth Depends on Tackling Population and Climate Risks: Finance Minister


Finance Minister Senator Muhammad Aurangzeb has warned that Pakistan cannot secure its long term economic future without addressing rapid population growth and rising climate threats, calling both issues central to the country’s development path. 

His remarks came at the launch of the District Vulnerability Index for Pakistan (DVIP) in Islamabad, an event organized by the Population Council.

Speaking at the ceremony, the minister said that although Pakistan is moving toward macroeconomic stability, the country will struggle to reach its full potential unless policymakers confront the pressure placed on schools, jobs, health systems and natural resources by a fast growing population. 

He added that climate change is intensifying these stresses, exposing many districts to extreme heat, flooding, drought and environmental decline.

Aurangzeb said the ministry has begun working to integrate population and climate priorities into budgeting and resource planning.

He noted that finance ministries around the world now play a central role in climate action and demographic management and Pakistan must adopt the same approach if it aims to build resilience and support inclusive growth.

The minister praised the Population Council for developing the District Vulnerability Index, which he described as a valuable tool based on three years of research. 

The index examines six domains of vulnerability and highlights sharp disparities across the country, especially in parts of Balochistan and Sindh, where poverty, weak infrastructure and climate exposure combine to create the highest levels of risk.

He also pointed to the rapid expansion of urban informal settlements, where poor water, sanitation and hygiene conditions contribute to child stunting and other development challenges. The minister said that understanding both rural and urban vulnerabilities is essential for designing future policies.

Aurangzeb called for the adoption of vulnerability metrics in future federal and provincial planning, arguing that better data will help ensure fairer distribution of resources and stronger protection for the most at risk communities. 

He thanked development partners, including the UK Government and FCDO, for their support in governance reforms and evidence-based policymaking.

The finance minister expressed confidence that the new index will guide future national strategies aimed at strengthening resilience, improving equity and preparing Pakistan for long-term demographic and climate pressures.

 





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