Peshawar (TDI): Finance Minister Muhammad Aurangzeb has said that Pakistan does not require financial support from the United Nations for ongoing flood relief efforts, stressing that sufficient resources are already available within the country’s development budget.
Speaking at the Pakistan Business Summit in Peshawar, Aurangzeb noted that the government’s Rs4.3 trillion (around $12–13 billion) development budget can be reprioritized to address rescue and rehabilitation needs. He emphasized that better coordination between the federation and the provinces would ensure effective use of these funds to tackle the widespread destruction of agricultural lands.
The finance minister highlighted recent improvements in remittance inflows, which reached $38 billion last year and are expected to climb to $41–43 billion during the current fiscal year. He also pointed out that Pakistan successfully met its $500 million Eurobond repayment in September without disturbing financial markets, and remains on track to settle the $1.3 billion Eurobond due in April 2026.
The summit, themed “Shaping What’s Next,” marked the first large-scale business gathering in Khyber Pakhtunkhwa’s capital in several years. It brought together policymakers, investors, and corporate leaders. Among the other speakers were Acting President and Senate Chairman Yusuf Raza Gilani, KP Governor Faisal Karim Kundi, Federal Privatisation Minister Mohammad Ali, KP Finance Advisor Muzammil Aslam, and former federal minister Mohammad Azfar Ahsan.
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Aurangzeb said that the government is working to rebuild confidence in the tax system while also broadening the tax base. He added that the policy rate, currently at 11%, is likely to be reduced over the course of this fiscal year, given the economic space available. On privatization, he confirmed that 24 state-owned enterprises have already been transferred to the Privatization Commission.
He further noted that recent official visits to Beijing, Riyadh, and New York had produced encouraging results for foreign direct investment and Pakistan’s engagement with international markets.
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At the event, awards were presented to Dr. Rahman of RMI, Dr. Abdul Bari Khan of Indus Hospital, and squash legend Jahangir Khan for their contributions in earning international recognition for Peshawar. Closing the conference, former Air Chief Marshal Sohail Aman described the moment as a turning point for Pakistan, citing a combination of internal cohesion, private sector readiness, and external opportunities.
Meanwhile, the Finance Ministry has told the International Monetary Fund (IMF) that the recent floods have inflicted economic losses of around Rs371 billion, damaging both agriculture and infrastructure. Officials informed the IMF that Pakistan’s external financing requirement stands at $26 billion, of which $12 billion is expected to be rolled over. The Chinese government has already assured the IMF that Pakistan’s refinancing and rollover needs will be met on time.
The government had initially set a GDP growth target of 4.2% for FY26, but in light of the flood impact, projections have been revised downward by 0.3 percentage points, bringing the new target to 3.9%.
