Pakistan Will Use Its Own Development Budget
Federal Finance Minister Muhammad Aurangzeb ruled out seeking flood-related assistance from the United Nations. He said Pakistan has enough resources in its Rs4.3 trillion (US$12–13 billion) development budget to manage rescue and relief efforts.
Aurangzeb made the remarks at the Pakistan Business Summit in Peshawar. He stressed that with better coordination between federal and provincial governments, the country could repurpose funds for rehabilitation. The floods have already caused losses of Rs371 billion, damaging agriculture and infrastructure.
Strong Remittances and Debt Repayments
Aurangzeb highlighted Pakistan’s remittance inflows of US$38 billion last year. He projected they could rise to US$41–43 billion this year. He also pointed out that Pakistan had already repaid a US$500 million Eurobond in September and remains ready for the US$1.3 billion repayment due in April 2026.
Economic Reforms and Interest Rate Outlook
The finance minister said the government would gradually lower the 11% policy rate during this fiscal year. At the same time, it would push structural reforms to support the private sector. He underlined the need to widen the tax base, improve the credibility of tax authorities, and restore business confidence.
Privatisation and Foreign Investment
Aurangzeb confirmed that 24 state-owned enterprises have been transferred to the Privatisation Commission. He also shared that his recent visits to Beijing, Riyadh, and New York had attracted new joint ventures and agreements in IT, agriculture, minerals, and pharmaceuticals.
Challenges and Future Outlook
While highlighting progress, Aurangzeb warned that climate change and population growth remain Pakistan’s biggest challenges. He assured that fiscal reforms and foreign investment would help position the country for long-term stability.
The summit, held under the theme “Shaping What’s Next”, was attended by acting President Yusuf Raza Gilani, KP Governor Faisal Karim Kundi, and Federal Minister for Privatisation Mohammad Ali.
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