The long-term economic and social stability of Pakistan is facing critical challenges that require immediate and sustained structural intervention. Speaking at a conference commemorating World Population Day 2026, the Federal Minister for Finance and Revenue, Muhammad Aurangzeb, warned that the future of the nation could be deeply compromised if the dual crises of rapid population expansion and climate change are not addressed with urgency. The minister classified both issues as existential threats to the state, emphasizing that overcoming them will require consistent policy reforms, seamless coordination across various state institutions, and dedicated long-term financial resources.
To address these challenges, the government has transitioned its strategy from the National Population Stabilisation Plan to the newly established National Population Council. This council is designed to bring together civil and military leadership, alongside provincial authorities and the federal government, to ensure unified action. Minister Aurangzeb observed that while the country has long understood the reasons behind its population crisis, the main obstacle has always been executing the actual solutions. The newly formed council aims to resolve this issue by setting clear targets, establishing Key Performance Indicators, and conducting regular progress reviews, noting that real advancement can only be achieved if results are systematically measured.
The finance minister also pointed out a common challenge in national governance, observing that annual budget-making processes often prioritize immediate, short-term pressures. In contrast, managing a rising population and mitigating the effects of climate change demand a much longer planning horizon. He warned that failing to address these two deep-seated issues today would prevent Pakistan from reaching its true economic and developmental potential by 2047, the milestone year when the country will celebrate its centenary of independence.
Addressing recent legislative measures, Aurangzeb highlighted the elimination of sales tax on contraceptives in the latest federal budget. He described this decision as a highly targeted intervention aimed at improving affordability and accessibility, which is expected to yield positive health and social benefits even in the short term. However, he clarified that temporary or tactical adjustments are not enough on their own. The minister called for deep structural reforms, specifically pointing to the National Finance Commission Award. Currently, the resource distribution formula allocates eighty-two percent of funds to the provinces based on population size. Aurangzeb labeled this current setup unsustainable, stating that this heavy population weight must be reconsidered in upcoming negotiations to avoid incentivizing population growth.
Regarding financial sustainability, the minister stated that the federal budget alone cannot bear the entire financial weight of these initiatives. He pointed to the ten-year Country Partnership Framework established with the World Bank, which prioritizes population dynamics as one of its three primary pillars. This framework focuses heavily on reducing learning poverty, returning out-of-school girls to classrooms, and combating child stunting. Aurangzeb estimated that this international partnership could deliver between six hundred million and seven hundred million dollars annually for targeted population and health programs.
Finally, the minister commended public awareness efforts, specifically praising the nationwide Waqfa birth-spacing campaign for its role in shifting public attitudes, and thanked the media for its support. Recalling a recent visit to a girls’ school in Karachi managed by the Zindagi Trust, he reiterated that female education is the ultimate driver of demographic transition. Pointing to successful models in Bangladesh, Iran, and Indonesia, Aurangzeb noted that these nations successfully lowered their population growth rates to approximately one percent over a fifteen-year period by focusing on girls’ education, increasing female workforce participation, and actively engaging religious scholars in public health campaigns.
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