PESHAWAR: Finance Minister Muhammad Aurangzeb has ruled out the need for seeking assistance from the United Nations (UN) for flood-related relief, saying that Pakistan has ample resources available within its development budget of Rs4.3 trillion (around US$12–13 billion) for rescue and relief efforts.
Addressing a Pakistan Business Summit as a keynote speaker in Peshawar, the finance minister said that by effectively prioritising and coordinating between the federal government and provinces, the funds could be repurposed to tackle the destruction caused by the recent floods that have severely impacted agricultural lands nationwide,The News reported.
Aurangzeb said Pakistan had made a significant improvement in remittances, which reached $38 billion last year and are projected to grow to $41-43 billion in the current fiscal year
He said that Pakistan successfully repaid $500 million in Eurobond obligations in September this year without market disruption and it is well-positioned to repay the $1.3 billion Eurobond in April 2026.
The conference was the first major business activity in Khyber Pakhtunkhwa’s capital city in years as policymakers, investors, and corporate leaders from across the country participated in the event under the theme of “Shaping What’s Next”.
The summit was also addressed by acting president and Senate chairman Yusuf Raza Gilani, KP Governor Faisal Karim Kundi, Federal Minister for Privatisation Mohammad Ali, KP Advisor for Finance Muzammil Aslam, former minister Mohammad Azfar Ahsan, and others.
Aurangzeb said that the remittance inflows into the formal economy had increased. “Last year, we had $38 billion in remittances. This year, we expect $41-43 billion,” he said.
He maintained that the policy rate, which remains at 11%, is expected to be lowered in the ongoing fiscal year. “Although the policy rate is very much the domain of the central bank, I think there is enough cushion that we can continue to push the rate south during the course of this fiscal year,” he added.
Aurangzeb said that in order to take the private sector forward, a structural reform agenda should be pursued effectively. He said that the government needed to restore the trust and credibility of tax authorities in the country. “We are making progress in both deepening and widening the tax base,” he added.
The finance minister said that the Federal Board of Revenue has been reduced to a tax/revenue collection forum, and the economic policymaking has been shifted to the finance division.
The budget for the next fiscal year would be delivered by the tax policy office of the finance division, he added.
On the privatisation front, Aurangzeb said that 24 state-owned enterprises have been handed over to the Privatisation Commission.
About foreign direct investment and the road to the international market, the finance minister said that recent visits to Beijing, Riyadh, and New York yielded tangible results.
At the summit, awards were presented to Dr Rahman of RMI, Dr Abdul Bari Khan of Indus Hospital, and squash legend Jahangir Khan for bringing international recognition to Peshawar through their achievements.
Closing the summit, former air chief marshal Sohail Aman said Pakistan was at an “opportune moment” where a favourable external environment, internal cohesion, a willing private sector, and government support created the “perfect time to lift off.”
Pakistan suffers Rs371bn flood losses
It may be noted here that Pakistan has apprised the International Monetary Fund (IMF) of economic losses amounting to Rs371 billion in the aftermath of recent floods, which severely damaged infrastructure and agriculture.
Ministry of Finance high-ups briefed the IMF review mission about external financing needs of $26 billion, out of which $12 billion will be rolled over, citing the example China’s ambassador gave commitment before the IMF last time that all rollover and refinancing requirements of Pakistan would be fulfilled within the stipulated timeframe
The government had set a real GDP growth target of 4.2% for the ongoing fiscal year (FY26), approved by the National Economic Council (NEC) and parliament at the time of the budget.
However, in light of the flood-related damages, authorities have projected a downward revision of the target by 0.3% points, bringing it to 3.9%.