Finance minister calls for inclusive, equitable globalization for benefiting developing economies

ISLAMABAD, Mar.26 (APP)-Minister for Finance and Revenue Senator Muhammad Aurangzeb has called for an inclusive and equitable globalization that benefits the developing economies of the world. He emphasized the urgent need for a globalization approach that supports all nations, particularly the developing economies, according to a press release issued on Wednesday.

He made these remarks while attending the 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.

Highlighting the growing inequalities within the global economic system, the Minister stated that while globalization has lifted over one billion people out of poverty, it remains fundamentally unequal, disproportionately benefiting developed economies while marginalizing the Global South.

He also warned that rising protectionism, unilateralism, and trade wars are exacerbating global divisions, threatening supply chains, and weakening international cooperation.

For globalization to survive, it must be rebalanced to allow fairer participation for all nations, especially those currently disadvantaged by restrictive trade rules and limited financial access, he added.

Senator Aurangzeb emphasized that the time for rhetoric has passed, and decisive action is needed. Pakistan, like many developing nations, advocates for a more balanced model of globalization—one that promotes fair trade, sustainable growth, and equitable financial systems. This model must be multilateral, innovation-driven, and inclusive, he said, in order to foster development and prosperity across all regions.

One of the key challenges facing inclusive globalization, according to the Minister, is the widening wealth and opportunity gap. He noted that developed nations continue to benefit from high-tech sectors, digital trade, and broader financial access, while developing nations are held back by high tariffs, restrictive investment policies, and limited infrastructure.

In response, Pakistan has consistently called for greater regional connectivity, fairer market access, and stronger multilateral cooperation. He cited initiatives like the China-Pakistan Economic Corridor (CPEC) and the Special Investment Facilitation Council (SIFC) as steps in the right direction.

The Minister also called for a global coalition among developing nations to collectively demand fairer trade rules and greater representation in international financial institutions. He stressed that these alliances are necessary to combat the disproportionate tariffs and trade restrictions that hinder the integration of developing economies into global markets.

He pointed out that Pakistan’s textile and agricultural sectors—key drivers of its economy—face significant challenges due to protectionist policies in developed countries and non-tariff barriers limiting their access to Western markets.

Addressing financial inequality, Senator Aurangzeb stressed the need for debt relief and financial justice through restructuring sovereign debt mechanisms to prevent cyclical debt crises, which hinder the economic growth of many emerging economies, including Pakistan. He highlighted that global debt has exceeded $100 trillion, with over 60 percent of low-income countries at risk of debt distress, diverting resources away from crucial social and economic investments.

He called for reforms in international financial institutions to provide developing economies with greater financial flexibility and sustainable debt relief mechanisms.

The Minister also emphasized the transformative potential of technology in bridging global disparities. He called on governments and international bodies to establish global AI initiatives and set up funds to support digital inclusion in developing economies.

While Pakistan has initiated the Digital Pakistan program, he stressed the need for stronger international collaboration in artificial intelligence (AI), fintech, and e-commerce to empower small and medium enterprises (SMEs) and drive inclusive economic participation in the country.

On climate change, the Minister emphasized that it must be central to any discussion on globalization. Developing nations contribute less than 10 percent of global carbon emissions yet suffer disproportionately from the consequences of climate disasters. Despite contributing less than 1 percent of global carbon emissions, Pakistan is one of the world’s most climate-vulnerable countries, he said.

Finance Minister Aurangzeb pointed out that the devastating floods of 2022 caused $30 billion in damages and displaced 33 million people. He reiterated Pakistan’s call for urgent climate financing, green technology transfers, and fair global climate policies to support climate resilience in developing economies.

Senator Aurangzeb concluded his remarks by calling for a more sustainable approach to globalization. Developed nations, he urged, must fulfill their $100 billion annual climate finance commitments and prioritize renewable energy cooperation to help emerging markets transition to low-carbon economies. Additionally, carbon-intensive trade restrictions that penalize export-dependent economies in the Global South must be reduced.

He also called for reforms in the global financial architecture, including the enhancement of Special Drawing Rights (SDRs) allocations and the promotion of green bonds and blended finance models to attract private-sector investment in emerging markets.

The Minister reiterated that the future of globalization must be one of inclusivity, fairness, and shared prosperity. The time to act, he emphasized, is now.