Finance Minister Muhammad Aurangzeb Rallies for Reinforced Global Fiscal Framework

Finance Minister Muhammad Aurangzeb has implored the world’s economic stewards to embark on swift, concerted endeavors to fortify the global fiscal architecture, rooted steadfastly in fairness, solidarity, and wide-ranging inclusion.

Standing before the plenary congregation at the Fourth International Conference on Financing for Development convened in Sevilla, Spain, Aurangzeb saluted the invigorated determination encapsulated within the ‘Compromiso de Sevilla.’ He commended its pragmatic yet visionary blueprints: amplifying aid for domestic revenue generation, counteracting aid retrenchment, broadening concessional funding via evolved measures surpassing mere GDP indices, augmenting multilateral development banks’ lending prowess, enhancing local currency financing, and systematically re-channelling dormant Special Drawing Rights through meticulously structured conduits.

He pressed for expeditious materialization of these undertakings — with acute emphasis on overdue debt recalibration. His clarion call spotlighted the genesis of a permanent institutional bastion for liquidity cushions and debt stewardship, a borrower-centric dais to uplift the collective resonance of emerging economies, and a UN-mandated intergovernmental dialogue to plug fissures within the present debt schema.

Earlier, the Finance Minister helmed the Multi-Stakeholder Roundtable 2, themed “Harnessing Private Enterprise and Capital,” alongside Canada’s Deputy Minister of International Development, Mr. Christopher MacLennan. This colloquium dissected pathways to galvanize private sector finance, ingenuity, and investments to underpin resilient, sustainable economic evolution.

In his introductory remarks, Aurangzeb delineated that public coffers alone remain woefully inadequate to bridge the cavernous financing chasm. He contended that private capital is the linchpin to scaling transformative progress. He urged robust maneuvers to bolster domestic resource streams, cultivate deeper capital markets imbued with SDG-aligned instruments, and sculpt regulatory ecosystems that magnetize — and de-risk — private inflows into pivotal domains like climate fortitude, affordable housing, and SME vitality.

Underscoring the salience of regulatory congruence, policy predictability, and incisive incentives, he championed the mainstreaming of catalytic devices: credit enhancements, impact-tethered bonds, debt-for-climate exchanges, and first-loss guarantees. These, he argued, should empower public monies to judiciously attract greater volumes of private and philanthropic infusion.

Aurangzeb further advocated for a considerable escalation in multilateral backing for blended finance and technical scaffolding, and for weaving novel financial mechanisms into national SDG trajectories and investment matrices. He accentuated that authentic, enduring development demands a global financial system that is equitable, all-encompassing, and attuned to the tangible aspirations of the developing world. He reiterated Pakistan’s unwavering fealty to the ethos enshrined in the Compromiso de Sevilla and vowed to stand shoulder-to-shoulder with the international fraternity to ensure no nation languishes in the quest for collective prosperity and resilient advancement.