Aurangzeb calls out global economic inequity, urges united front for developing economies

ISLAMABAD: “Global economy is a necessity, not a choice. The global economy has undoubtedly driven economic growth [but] the global economy is highly unequal and fragmented,” said Finance Minister Muhammad Aurangzeb. He shed light on the challenges faced by the developing economies in capitalising on the benefits of globalisation.

He made these remarks in a high-level session titled ‘Inclusive Globalization That Benefits All – Pathways and Actions’ at the Boao Forum for Asia Annual Conference 2025, held in Boao, Hainan Province, China.

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The finance minister said that most of the benefits of the global economy go to developed economies, and the developing countries only end up facing higher tariffs and trade restrictions.

“Developing countries should form a coalition to demand better representation,” Aurangzeb said, adding that technology should be a means of equality. “AI and FinTech funds should be established globally,” he said.

He also highlighted that debt crises become obstacles to global integration and they need to be stopped. Aurangzeb said that global debt has soared past $100 trillion, with over 60 per cent of low-income countries at risk of debt distress.

He pointed out that this debt burden results in diverting of resources from critical social and economic investments towards debt repayments. He urged reforms in international financial institutions (IFIs) to offer developing economies greater financial flexibility and sustainable debt relief mechanisms.

“Stability should be adopted as a fundamental principle. Balanced globalization is needed for a common future. The world should build a sustainable and innovative global economy,” he added.

The federal minister said that many developing countries like Pakistan want a model of globalization. Speaking about the initiatives taken so far, he said, “Pakistan faces trade imbalance and external debt pressures. The SIFC [Special Investment Finance Council] has increased trade capacity, improved economic infrastructure and created investment opportunities”.

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Finance Minister Aurangzeb said that Pakistan has launched the Digital Pakistan initiative, adding that the challenges of climate change and inequality still need to be addressed. He said that the climate discussion should be central to all globalization discussions.

Developing nations contribute less than 10 per cent of global carbon emissions yet suffer disproportionately from the consequences of climate disasters. “Pakistan contributes less than 1 per cent of global carbon emissions, but it is one of the most climate-vulnerable countries in the world,” he added.