PESHAWAR – Federal Finance Minister Muhammad Aurangzeb on Thursday ruled out seeking assistance from the United Nations (UN) for flood-related relief, saying Pakistan has sufficient resources within its Rs4.3 trillion development budget to manage rescue and rehabilitation efforts.
Speaking at the Pakistan Business Summit 2025 in Peshawar, Aurangzeb stressed that effective coordination between the federation and provinces would allow the government to repurpose funds to deal with the devastation caused by recent floods that badly affected agricultural lands across the country.
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Strong Economic Indicators
Highlighting Pakistan’s improving financial position, the finance minister said remittances reached $38 billion in 2024 and are expected to grow to $41–43 billion this fiscal year. He also noted that Pakistan successfully repaid $500 million in Eurobond obligations in September 2025 without market disruption and is well-positioned to repay $1.3 billion in April 2026.
Aurangzeb added that the policy rate, currently at 11 percent, is expected to be lowered during the fiscal year. He stressed the need for structural reforms, widening the tax base, and restoring trust in tax authorities.
Privatisation and Foreign Investment
The minister shared that 24 state-owned enterprises (SOEs) have been handed over to the Privatisation Commission. On foreign investment, he pointed to progress in Beijing, Riyadh, and New York, where agreements were reached in minerals, IT, AI, agriculture, and pharma sectors.
He said the government’s reform agenda, coupled with global partnerships, presents Pakistan with “a perfect time to lift off.”
Focus on Climate and Demographics
Aurangzeb warned that climate change and population growth remain Pakistan’s biggest long-term challenges, urging immediate attention rather than waiting for full economic recovery.
Business Summit Highlights
The Pakistan Business Summit, jointly organised by Nutshell Group and Al Baraka Bank (Pakistan) Limited, was the first major corporate event in Peshawar in years, attracting policymakers, investors, and industry leaders.
Acting President and Senate Chairman Yusuf Raza Gilani said Pakistan’s economy was stabilising, but reforms in agriculture, taxation, and education were urgently needed. He also stressed on empowering the country’s youth, who make up 60% of the population, and unlocking the potential of tourism and regional connectivity.
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KP Governor Faisal Karim Kundi and former minister Azfar Ahsan also addressed the summit, highlighting the province’s untapped potential in religious tourism, natural resources, and hydel power. Awards were presented to leading professionals, including squash legend Jahangir Khan.
