Finance Minister Muhammad Aurangzeb on Thursday warned that climate change and rapid population growth pose serious threats to Pakistan’s developmental trajectory.

Speaking at an event in Islamabad to mark World Population Day, the finance minister said that if Pakistan aims to become a $3 trillion economy in the future, it must confront these twin challenges with urgency and resolve.

“These issues are not abstract concerns—they are directly impacting the lives of our children,” he said, referring to malnutrition, poor sanitation, stunted growth, and the lack of access to clean drinking water.

Highlighting the adverse socio-economic consequences of an unchecked population boom, Mr Aurangzeb underscored the importance of birth spacing and public awareness.

“Appropriate spacing between children is not contrary to Islamic teachings. Mufti Zubair has delivered a vital message on this matter. Educating and empowering women is critical to achieving meaningful progress,” he added.

He also alluded to the recently announced federal budget, which he said was prepared under the leadership of Prime Minister Shehbaz Sharif with active participation from the entire cabinet.

However, Mr Aurangzeb noted that the current mechanism for population-based distribution under the National Finance Commission (NFC) Award warrants a review — a point echoed by both the federal health and planning ministers.

The finance minister drew attention to the imbalance between federal and provincial development allocations, revealing that while the federal government’s development budget stands at Rs1 trillion, the provinces command a combined development budget of Rs4 trillion.

“This discrepancy calls for a joint national strategy. We must move beyond provincial silos and act collectively for the country’s future,” he asserted.

Mr Aurangzeb also spoke about Pakistan’s engagement with international financial institutions, disclosing that a 10-year Country Partnership Framework has been finalised with the World Bank. “One-third of the financial commitment under this programme will focus on population control and climate change mitigation,” he stated.