Pakistan calls for reform in global aid architecture at financing conference

The still image taken from a video shows Pakistan Finance Minister Muhammad Aurangzeb addressing the Fourth International Conference on Financing for Development (FfD4) in Spain, on July 2, 2025. (Ministry of Finance)
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Updated 02 July 2025
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Pakistan calls for reform in global aid architecture at financing conference

  • Finance Minister Muhammad Aurangzeb urges shift from pledges to delivery through locally driven strategies
  • He also calls for scaling up South-South cooperation as a context-driven alternative to donor-led frameworks

KARACHI: Pakistan has called for a fundamental shift in global development financing, urging the international community to move away from donor-driven models and adopt country-led, results-oriented strategies that align with national priorities and deliver measurable outcomes, according to an official statement issued on Wednesday.

The country has long struggled with foreign loans and aid programs that often impose rigid conditions, restricting its ability to pursue development goals on its own terms. Facing recurring external financing gaps, high debt servicing costs and limited fiscal space, Pakistan has also called for greater access to low-cost financing to support areas like climate adaptation and social spending without deepening its debt burden.

Finance Minister Muhammad Aurangzeb raised these issues during his address at the Fourth International Conference on Financing for Development (FfD4) in Spain.

“In his remarks, the Finance Minister laid out a ... comprehensive strategy ... to foster meaningful progress,” said a statement issued by the Ministry of Finance. “As a first step, he stressed the need for urgent execution of priority actions to transition from pledges to tangible delivery.”

“This, he noted, must involve greater country ownership of development agendas, with national strategies taking precedence over donor-driven models,” the statement added. “Aligning frameworks with domestic priorities is key to ensuring sustainability and relevance on the ground.”

Aurangzeb also called for expanding access to concessional and blended financing, particularly for investments aligned with the Sustainable Development Goals (SDGs) and climate resilience.

He emphasized that international financial institutions and credit rating agencies should account for a country’s reform efforts, developmental ambitions and climate vulnerabilities when assessing risk and setting lending terms.

The minister further advocated for a shift in how development cooperation is approached within developing countries, arguing for a move away from input-focused models toward results-driven strategies linked to measurable outcomes.

He underscored the importance of integrating cross-cutting priorities, such as gender equity, digital inclusion and climate resilience, into national development plans.

Aurangzeb also urged a scale-up of South-South and triangular cooperation, describing such partnerships as more contextually grounded and effective than externally imposed frameworks.

The minister reaffirmed Pakistan’s commitment to building inclusive, results-driven partnerships during the conference.


Pakistan says defense pact with Saudi Arabia elevated brotherly ties to ‘new heights’

Updated 25 February 2026
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Pakistan says defense pact with Saudi Arabia elevated brotherly ties to ‘new heights’

  • Pakistan, Saudi Arabia signed strategic defense pact last year pledging aggression against one will be treated as attack on both
  • Deputy PM Ishaq Dar says enduring bonds with Islamic and Arab nations form vital pillar of Pakistan’s foreign policy 

ISLAMABAD: Deputy Prime Minister Ishaq Dar said on Wednesday that Pakistan’s defense pact with Saudi Arabia elevated its brotherly ties with the Kingdom to “new heights,” stressing that close ties with Arab and Islamic nations form a key pillar of Islamabad’s foreign policy. 

Pakistan and Saudi Arabia signed a Strategic Mutual Defense Agreement on Sept. 17 last year, pledging that aggression against one country would be treated as an attack on both, enhancing joint deterrence and formalizing decades of military and security cooperation.

Both nations agreed in October 2025 to launch an economic cooperation framework to strengthen trade and investment ties. 

“In the Middle East, our landmark Strategic Mutual Defense Agreement with Saudi Arabia has elevated our brotherly ties to new heights,” Dar said while speaking at the Pakistan Governance Forum 2026 event in Islamabad. 

The Pakistani deputy prime minister was speaking on the topic “Navigating International Relations Amidst Changing Geo-Politics.”

Dar noted that Pakistan has reinforced partnerships with other Middle Eastern nations such as the UAE, Qatar, Jordan, Oman, Egypt and Bahrain. He said these partnerships have yielded “concrete agreements” in investment, agriculture, infrastructure, and energy sectors. 

“Our enduring bonds with Islamic and Arab nations form a vital pillar of our foreign policy, and we will continue to expand our partnerships across Asia, Latin America, and Africa,” he said. 

Dar pointed out that the presidents of Kazakhstan, Uzbekistan and Kyrgyzstan have undertaken visits to Pakistan in recent months, reflecting Central Asian nations’ desire to boost cooperation with Islamabad.

On South Asia, the Pakistani deputy PM said Pakistan has successfully transformed its fraternal ties with Bangladesh into “a substantive partnership.”

“Similarly, the trilateral mechanism involving China, Pakistan, and Bangladesh has been launched with a view to expanding and deepening regional cooperation and synergy,” the Pakistani minister said. 

He said Islamabad has strengthened its “all-weather” partnership with China via the second phase of the multi-billion-dollar China-Pakistan Economic Corridor agreement and “unwavering support” from both sides for each other’s core interests. 

Dar said Pakistan had also reinvigorated its partnership with the US, advancing cooperation in trade, technology, investment, and regional stability. 

“This calibrated approach has enhanced our ability to navigate complexity with skill and confidence, ensuring that our national interests are served without compromising our core foreign policy principles,” he said.