ISLAMABAD: Finance Minister Muhammad Aurangzeb on Wednesday sounded alarm at Pakistan’s rising population and the disastrous climate change effects being suffered by the country, saying that these two reasons could prevent Pakistan from becoming a $3 trillion economy.
Pakistan’s population is over 241 million people, making it the sixth most populous country in the world. A lack of adequate infrastructure, health and educational opportunities in the country puts added stress on its public services, giving rise to unemployment and poverty.
The South Asian nation is also recognized among countries that are most affected by climate change worldwide. Unusually heavy monsoon rains in 2022 killed over 1,700 people and inflicted damages worth over $30 billion. Torrential rains and floods also killed over 1,000 people in Pakistan since late June this year, as authorities carry out surveys to determine the extent of the damage inflicted by the deadly rains.
“So when we say that we are a $411 billion economy that can be a $3 trillion economy, there are two reasons that can derail us,” Aurangzeb said during an interview with Geo News.
“One is climate change and the second is population. Population growth.”
The minister said that climate change was no longer “an academic discussion,” pointing out that people were suffering its effects in Pakistan. He highlighted the worsening smog situation in the eastern city of Lahore and the recent floods in Pakistan as evidence of the worsening impacts of climate change.
He said the government had estimated that the economy would grow at 4.2 percent before floods wreaked havoc in the country.
“There is no doubt now that at least 0.4-0.5 percent at least are going to be shaved off,” Aurangzeb said.
The minister said eighty percent of the damage inflicted by the recent floods had been suffered by the eastern Punjab province, where the agriculture sector, primarily the rice and cotton-producing regions, had been impacted.
Aurangzeb said Prime Minister Shehbaz Sharif had tasked Climate Change Minister Musadik Malik to devise a 300-day plan to mitigate the effects of climate change.
When asked why certain multinationals like Proctor and Gamble and Microsoft were leaving Pakistan while others such as Shell plc., TotalEnergies SE and some pharmaceutical firms were divesting their shares in the country, the minister said global companies at times make their own “participation choices.”
“These global companies make decisions on their participation regarding which clients to stay with, which products to stay with and in which countries to remain,” Aurangzeb said.
The finance minister pointed out that while some multinationals had exited Pakistan, others had also started their operations in the country.
“You have seen in the energy sector that Aramco and Wafi [Energy] have arrived,” Aurangzeb said. “You can see there are some shifts also taking place, such as the West to East shift.”
