Population growth, climate change ‘existential threats’ to Pakistan’s economy: Aurangzeb
KARACHI: Finance Minister Muhammad Aurangzeb warned that Pakistan’s economic stability faces two of its greatest challenges, unchecked population growth and climate change, calling them “existential threats” that demand immediate and sustained policy action.
Speaking at The Future Summit 2025, themed “Course Correction: Redefining the Direction,” in Karachi, Aurangzeb said the government is steering the economy toward an investment-driven model led by the private sector, rather than one dependent on borrowing.
He spoke about his recent visits to Washington, where he met with officials from the World Bank and the International Monetary Fund (IMF). He appreciated recent diplomatic efforts with Saudi Arabia, the United States, and other partners, describing them as steps toward stronger bilateral and economic cooperation.
Aurangzeb announced that Pakistan has reached a staff-level agreement with the IMF for its second loan review, with the board expected to approve the next tranche in early December.
He underlined that geopolitical shifts were reshaping the global economy. “The role of the private sector and productivity-led growth is vital for building resilience in the world economy,” he noted. He said investor confidence was improving, adding, “Our direction is right.”
Aurangzeb said fiscal reforms had advanced steadily over the past 18 months, with new measures under way to expand the tax base using artificial intelligence to strengthen revenue collection. “Our sugar sector is now digitised, and the cigarette sector will follow,” he said, adding that 900,000 new taxpayers had been registered. The policies will expand to other sectors as well.
The finance minister confirmed that Google had decided to open an office in Pakistan and was also considering the country as an export hub, reflecting growing global confidence in Pakistan’s tech ecosystem.
Aurangzeb said a blockchaincentre had been established at the Lahore University of Management Sciences (LUMS) through a USD 13 million private investment, as part of the government’s broader push toward emerging technologies and digital infrastructure for AI-led growth.
He also mentioned that Egypt had shown interest in adopting Pakistan’s reform model, while the privatisation of Pakistan International Airlines (PIA) remained on track for completion by the end of the year. A recent UAE investment in a Pakistani bank, he said, marked “the beginning of a new era.”
He also noted interest from Egypt in adopting Pakistan’s reform model, while the privatisation of Pakistan International Airlines (PIA) was on track for completion by the end of the year. Recent UAE investment in a Pakistani bank signalled “the beginning of a new era,” Aurangzeb said. Staff Report
