Pakistani finance chief calls for coalition of developing nations to push for fair trade, financial reform
ISLAMABAD: Federal Minister for Finance and Revenue Muhammad Aurangzeb has proposed the formation of a global coalition of developing nations to collectively advocate for fair trade and better representation in international financial institutions, while criticizing the global economy as unequal, according to an official statement issued on Wednesday.
The finance chief made these remarks during his address at the Boao Forum for Asia Annual Conference 2025, held in China.
The forum, often referred to as the 'Asian Davos,' is a high-level platform where leaders from government, business and academia across Asia and other continents gather to discuss pressing global and regional issues, with this year's conference — titled 'Asia in the Changing World: Towards a Shared Future' — running from March 25 to 28.
'Developing countries must unite to demand fair trade principles and improved representation in global financial institutions,' Aurangzeb said, according to a finance ministry statement, as they asked them to form a global coalition.
He said globalization's had led to general progress, but its benefits remained unevenly distributed.
'The global economy has undoubtedly driven economic growth,' Aurangzeb said, according to a statement released by Pakistan's finance ministry. 'However, it remains highly unequal and fragmented.'
'Such an economy primarily benefits developed nations, while countries in the Global South are often overlooked,' he added.
Highlighting the structural challenges faced by developing nations, Aurangzeb pointed to high tariffs, discriminatory trade practices and barriers to market access that limit their ability to participate fully in the global economy.
He also stressed the urgency of reforming the global sovereign debt system, urging multilateral institutions such as the G20 and the IMF to play a more constructive role in debt relief and financial justice.
'The G20 and IMF must reform the sovereign debt system to enable debt forgiveness and ensure financial fairness,' he said.
Calling for inclusive and sustainable growth, Aurangzeb advocated for stronger multilateral cooperation to promote equitable market access, enhance regional connectivity, and build a global economy that works for all.
'An inclusive global economy is not a choice but a necessity,' he said.
He also underscored the role of technology in closing the global equity gap, recommending the creation of international AI and fintech funds to support digital inclusion in developing countries.
'Technology should serve as a tool for equity,' he said.
The finance minister further called for sustainability and environmental justice to be integrated into globalization policies.
He stressed the need for increased climate financing and easier technology transfer to countries most vulnerable to the effects of climate change.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
an hour ago
- Arab News
Pakistan hikes defense budget 20 percent following conflict with India, but overall spending is cut
ISLAMABAD: Pakistan has hiked defense spending by 20 percent following last month's deadly conflict with India. The government of Prime Minister Shehbaz Sharif announced the increase Tuesday as part of the budget for the fiscal year 2025-26, in which overall spending will be cut by 7 percent to 17.57 trillion rupees ($62 billion). Pakistan and India were pushed to the brink of war earlier this year after a gun massacre of tourists in Indian-controlled Kashmir, marking the biggest breakdown in relations between them since 2019. Weeks of tension followed, culminating in missile and drone strikes that resulted in dozens of fatalities on both sides of the border. Finance Minister Muhammad Aurangzeb said the government was allocating 2.55 trillion rupees ($9 billion) for defense compared with 2.12 trillion rupees in the previous budget. India in February increased its defense spending by 9.5 percent. Sharif told the Cabinet: 'All economic indicators are satisfactory. After defeating India in a conventional war, now we have to go beyond it in the economic field as well.' Opposition members of the National Assembly verbally abused Aurangzeb, chanting slogans, throwing scrunched-up copies of the budget at him, whistling, and banging their desks as he gave his address. The coming year's defense allocation is considerably more than the government's expenditure on higher education, agricultural development, and mitigating climate-related risks, to which Pakistan is especially prone.
Arab News
10 hours ago
- Arab News
Pakistan announces tax relief for salaried class in FY2025-26 budget
ISLAMABAD: Pakistan announced significant income tax relief for low- and middle-income earners on Tuesday as it presented its federal budget for the fiscal year 2025-26, aiming to ease the burden on salaried individuals amid high inflation and economic uncertainty. Pakistan's tax-to-GDP ratio remains below 10%, among the lowest in the region. The government has pledged to raise this ratio to 14% through tax reforms, digital enforcement, and expanding the tax base. Finance Minister Muhammad Aurangzeb, presenting his first full-year budget in the National Assembly, said the income tax rate for individuals earning between Rs600,000 and Rs1.2 million ($2,128–$4,255) annually would be cut from 5% to 1%. 'First of all, we are giving relief where it is needed the most,' Aurangzeb told parliament, adding that the measure was in line with Prime Minister Shehbaz Sharif's directive to support wage earners and retain talent in the country. The government has also proposed reducing the tax on annual income up to Rs1.2 million from Rs30,000 to Rs6,000, lowering the tax rate from 15% to 11% for those earning up to Rs2.2 million ($7,800) and cutting the rate from 25% to 23% for income between Rs2.2 million and Rs3.2 million ($11,350). For high-income earners making over Rs10 million ($35,460) annually, a 1% reduction in the additional surcharge has been recommended to help curb the ongoing brain drain, the minister said. Aurangzeb described the changes as part of broader efforts to simplify the tax structure and 'strike a balance between inflationary pressures and take-home pay.' The federal budget, with a total outlay of Rs17.57 trillion ($62 billion), comes as Pakistan seeks to stabilize its economy under a $7 billion International Monetary Fund (IMF) bailout program. The budget also includes a 20% increase in defense spending, while total government expenditure is expected to be 7% lower year-on-year, reflecting fiscal consolidation goals tied to IMF negotiations. The proposed budget will be debated in parliament before final approval.
Asharq Al-Awsat
11 hours ago
- Asharq Al-Awsat
IMF Team Makes First Syria Visit Since 2009
An IMF team visited Syria for the first time since 2009 to take part in efforts to rebuild the economy after years of civil war and the fall of Bashar al-Assad, the lender said Tuesday. The International Monetary Fund's trip to Damascus took place from June 1 to June 5, and its team sought to discuss authorities' priorities and how to help achieve them. Syria's economy and the country are a wreck after 14 years of war under Assad, who was ousted in December. "Syria faces enormous challenges following years of conflict that caused immense human suffering and reduced its economy to a fraction of its former size," said Ron van Rooden, who led the visit. Around six million people have fled the country while another seven million have been displaced internally, he noted. "Output has plummeted, real incomes have fallen sharply, and poverty rates are high," he said, adding that state institutions have also been weakened with much infrastructure destroyed. "There is great urgency to address these challenges and achieve a sustainable economic recovery," van Rooden said in a statement at the end of the mission. Much of Syria's infrastructure has been destroyed by the war, which began with a bloody crackdown on peaceful anti-regime protests. Longtime strongman Assad was ousted in a lightning offensive by opposition factions in December, and Syria's new government has sought to rebuild diplomatic ties, including with international financial institutions. Last month, the IMF said it had held useful discussions with Syria's economic team. The Fund's last comprehensive review of the health of the Syrian economy was done in 2009, before the outbreak of the war in 2011. In April, Saudi Arabia and Qatar announced that they would settle Syria's debt to the World Bank totaling about $15 million. The World Bank suspended operations in Syria when the war began. The settlement of its arrears will allow it to resume accessing the bank's financial support and technical advice.
