FinMin calls for global trade reform, urges fairer policies for developing nations

Finance Minister Muhammad Aurangzeb has urged world leaders to reform global trade policies, arguing that developing nations face excessive tariffs, trade restrictions, and financial barriers that hinder their economic growth and integration into the global economy.

Speaking at the Boao Forum for Asia 2025, Aurangzeb highlighted how unfair global trade practices disproportionately benefit developed nations, leaving emerging economies struggling with high debt burdens, trade imbalances, and limited financial access.

He warned that if these inequalities persist, the gap between rich and poor nations will continue to widen.

Aurangzeb emphasised that an inclusive global economy is not a choice but a necessity, stating that despite significant economic advancements, the current system remains deeply unequal.

He pointed out that while some economies thrive under existing trade rules, others—especially those in the global South—are left behind due to systemic barriers.

To address this, he proposed the creation of a Global Alliance for Inclusive Trade, urging developing countries to unite and demand:

• Fairer trade policies that reduce tariffs and restrictions on emerging economies.

• Better representation in international financial institutions such as the IMF and World Bank.

• Greater access to digital and financial technologies to bridge economic disparities.

Aurangzeb also called for leveraging technology as an equaliser, proposing the establishment of global AI and fintech funds that would support digital transformation and economic participation in developing nations.

The finance minister stressed the need for the G20 and IMF to restructure sovereign debt to ensure financial stability in struggling economies. He argued that the current debt system traps developing nations in a cycle of financial distress, preventing them from achieving long-term economic growth.

Additionally, he underscored the importance of climate finance reforms, noting that while Pakistan contributes less than 1% of global carbon emissions, it remains among the top 10 most climate-vulnerable nations. He called for greater international support in climate finance and technology transfers to help developing countries mitigate and adapt to climate change.

Aurangzeb outlined Pakistan’s efforts to strengthen its economic foundation, citing initiatives such as the Special Investment Facilitation Council (SIFC) and the China-Pakistan Economic Corridor (CPEC). These projects, he said, have enhanced trade potential, attracted foreign investment, and improved infrastructure.

However, he noted that global cooperation is crucial in areas like AI, fintech, and digital commerce, which could significantly benefit Pakistan’s small and medium enterprises (SMEs) by opening up new economic opportunities.

"The time for speeches is over. It’s time for action," Aurangzeb asserted, calling on global leaders to work together in building a multilateral, innovation-driven economy that promotes fair trade, sustainable development, and equal financial opportunities for all nations.