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ISLAMABAD: Federal Minister for Finance and Revenue Muhammad Aurangzeb on Thursday called for a rethinking of how federal funds are allocated to provinces, arguing that future disbursements should reflect human development indicators instead of just population size.

Speaking at an event organized by the Ministry of National Health Services in connection with World Population Day in the federal capital, Aurangzeb said Pakistan’s rapid population growth posed a serious challenge and must be addressed through coordinated, long-term policy interventions.

“As we move forward with revisiting and reviewing the NFC [National Finance Commission] award, the current allocation driver must be reconsidered,” he said while addressing the gathering.

“There are broader factors, such as human development indicators, which should be incorporated,” he added. “These can help shape a revised formula for how we divvy up resources between the federation and the provinces.”

The NFC is a constitutional mechanism that determines how financial resources are distributed from the federal government to Pakistan’s provinces. The existing formula primarily weighs population, though there are several influential voices within the government demanding that future formulas consider a broader range of development metrics.

The finance minister also noted Pakistan must confront two “existential issues” — climate change and population growth — if it wants to reach its long-term goal of becoming a $3 trillion economy by 2047.

“Just think about it: 40 percent of children under the age of five in this country are stunted,” he said. “If we don’t address this, there is no sustainable path forward.”

Aurangzeb noted the issue extended beyond food and sanitation, pointing to the need for birth spacing, women’s education and family planning awareness.

He also emphasized the scale of available resources for addressing these challenges.

Referring to Pakistan’s recently signed 10-year Country Partnership Framework with the World Bank, he said the agreement includes $20 billion in financing, with $600–700 million annually earmarked for population-related measures.

“We have a lot of funds already at our disposal, provided we find the right places to invest and prioritize them correctly,” he said.

Aurangzeb also argued that Pakistan’s total development spending across federal and provincial budgets exceeds Rs 4.2 trillion ($14.7 billion).

“The issue isn’t funding,” he said. “We must shift from infrastructure-heavy thinking to human capital investments.”

KARACHI: Pakistan is seeking a valuation of at least $1 billion for the Roosevelt Hotel it owns in New York and is ready to part with a minority stake in the prime Manhattan property as it scouts for a redevelopment partner, a senior government official said.

Named after former US President Theodore Roosevelt, the century-old property in midtown Manhattan is seen as one of Pakistan’s most valuable foreign assets, which it acquired in 2000. Faced with mounting losses, the over 1,000 room hotel was shut in 2020, and has also operated briefly as a migrant shelter.

As part of the government’s $7 billion IMF-backed privatization push, Pakistan’s government approved a “transaction structure for the Roosevelt Hotel” on Tuesday , saying it won’t do an outright sale but has decided to adopt a joint venture model to maximize long-term value. It gave no further details.

The senior Pakistani official said the government will retain ownership in the project through an equity partnership, but declined to disclose the size of the stake being offered to any potential JV partner.

The official declined to be named since the process is confidential. JLL, or Jones Lang LaSalle, will run the process and the government is eyeing a valuation of over $1 billion for the 42,000 square feet property it hopes could be redeveloped for residential-cum-office use, the official said.

“It is among the best pieces of land in NY real estate ... The process begins immediately and is expected to be completed in the next six-nine months,” said the official.

Pakistan’s Privatization Ministry and state-owned Pakistan International Airlines (PIA), which owns the hotel through its investment arm, did not respond to request for comments, and neither did JLL.

Pakistan this week also approved four parties to bid for a stake in debt-ridden PIA.

The hotel is located near marquee New York destinations such as Grand Central Terminal, Times Square, and Fifth Avenue, placing it in one of Manhattan’s most valuable commercial zones.

Pakistan’s government is estimating the redevelopment will take 4–5 years, the official said, adding the “interest level is extremely high.”

In June, the government said it expects $100 million in the initial payment from the joint-venture partnership by June 2026.