ISLAMABAD — Finance Minister Muhammad Aurangzeb has called for population size to be formally recognised as a core criterion in the National Finance Commission (NFC) Award, alongside broader human development indicators to guide fiscal allocations between the federal government and provinces.
Speaking at a World Population Day event organised by the Ministry of National Health Services, Regulations and Coordination in Islamabad, the minister supported proposals by the health and planning ministers to revise the existing formula-based resource distribution system.
The NFC Award, governed by Article 160 of the Constitution, defines the mechanism for distributing financial resources between the federation and provinces. Aurangzeb argued that beyond traditional economic metrics, population growth and human development should drive fiscal planning to achieve long-term sustainability.
“If we want to realise the dream of being a $3 trillion economy by 2047, we have to deal with two existential issues—climate change and population growth,” he said.
Pakistan’s current population growth rate of 2.55%, among the highest in the region, presents major challenges to economic and social development, the minister said. He warned that the country’s future workforce is at risk, noting that 40% of children under five suffer from stunted growth and that a significant share of the female population remains outside the formal education and labour systems.
“Females account for at least 50% of the population. If they don’t become a productive part of the workforce, then this country cannot move forward in a sustainable way,” he added.
Aurangzeb highlighted the need for a comprehensive approach to tackling malnutrition, poor sanitation, limited access to clean water, and inadequate awareness of birth spacing. He called for “end-to-end” solutions to improve child health, learning outcomes, and family planning indicators.
On development financing, the minister advocated shifting donor engagement away from traditional infrastructure-led funding and toward investments in education, health, and population planning. “We need a paradigm shift in how development spending is planned and executed,” he said.
Citing the current year’s development budget—Rs1 trillion at the federal level and Rs4.2 trillion when including provinces—Aurangzeb said the core challenge lies not in fund availability but in prioritisation and coordination. He recommended a unified, national-level development framework instead of compartmentalised federal and provincial allocations.
Referring to Pakistan’s 10-year Country Partnership Framework with the World Bank, the minister noted that four of the six pillars focus on climate and population issues. He said approximately one-third of the expected $20 billion in support—equivalent to $600–700 million annually—would be directed toward population-related programs.
Aurangzeb stressed that such funding must be used strategically for lasting impact, rather than symbolic measures like tax exemptions on contraceptives. “We need to go beyond tokenism and focus on results,” he said.
