Islamabad: Finance Minister Muhammad Aurangzeb has emphasized the urgent need for an inclusive approach to globalization that benefits all nations, particularly the developing economies. He made this call while attending a high-level session titled 'Inclusive Globalization That Benefits All - Pathways and Actions' at the Boao Forum for Asia Annual Conference 2025 in China today.
According to Radio Pakistan, the Minister highlighted the growing inequalities within the global economic system, stating that globalization has lifted over one billion people out of poverty but remains unequal, disproportionately benefiting developed economies while marginalizing the Global South. He warned that rising protectionism, unilateralism, and trade wars are exacerbating global divisions, threatening to disrupt supply chains and weaken international cooperation. For globalization to survive, it must be rebalanced to allow fairer participation for all nations, particularly those currently disadvantaged by restrictive trade rules and limited financial access.
Muhammad Aurangzeb underscored that the time for rhetoric has passed and decisive action is needed. He stressed that Pakistan advocates for a more balanced model of globalization that promotes fair trade, sustainable growth, and equitable financial systems. This model, he suggested, must be multilateral, innovation-driven, and inclusive to foster development and prosperity across all regions.
The Minister noted that the widening wealth and opportunity gap is one of the key challenges for inclusive globalization. Developed nations continue to gain from high-tech sectors, digital trade, and broad financial access, while developing nations are held back by high tariffs, restrictive investment policies, and limited infrastructure.
Aurangzeb highlighted Pakistan's consistent calls for greater regional connectivity, fairer market access, and stronger multilateral cooperation. He pointed to initiatives like the China-Pakistan Economic Corridor and the Special Investment Facilitation Council as significant 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 argued that these alliances are necessary to combat 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 face significant challenges due to protectionist policies in developed countries and non-tariff barriers that limit their access to Western markets. Addressing financial inequality, Aurangzeb stressed the need for debt relief and financial justice through restructuring sovereign debt mechanisms to prevent cyclical debt crises, which are impeding the economic growth of many emerging economies, including Pakistan.
He called for reforms in international financial institutions to offer developing economies greater financial flexibility and sustainable debt relief mechanisms. Aurangzeb emphasized the transformative potential of technology in bridging global disparities, urging governments and international bodies to establish global AI and fintech funds to support digital inclusion in developing economies.
Talking about climate change, he noted that developing nations contribute less than ten percent of global carbon emissions yet suffer disproportionately from the consequences of climate disasters. Pakistan, despite contributing less than one percent of global carbon emissions, is one of the world's most climate-vulnerable countries, with the devastating floods of 2022 inflicting 30 billion dollars in damages and displacing 33 million people.
The Minister stated that Pakistan continues to advocate for urgent climate financing, green technology transfers, and fair global climate policies to support climate resilience in developing economies. He urged developed nations to fulfill their 100 billion dollars annual climate finance commitments and prioritize renewable energy cooperation to help emerging markets transition to low-carbon economies.
He advocated for the reduction of carbon-intensive trade restrictions that penalize export-dependent economies in the Global South and called for reforms in the global financial architecture, including the enhancement of Special Drawing Rights 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.