Aurangzeb: Pakistan can fund flood relief without UN aid

Finance Minister Muhammad Aurangzeb has ruled out seeking United Nations assistance for flood-related relief, saying Pakistan can repurpose allocations within its Rs4.3 trillion development budget to meet rescue and rehabilitation needs. Speaking at a business summit in Peshawar, he said better coordination between the Centre and provinces would enable swift reprogramming of funds toward recovery.

The minister cited improvements in remittances — $38 billion last year with a projection of $41–43 billion this fiscal — and noted that Pakistan repaid a $500 million Eurobond in September without market disruption. He added that the policy rate, currently at 11% and set by the State Bank, has room to decline in the ongoing fiscal year if conditions permit.

Aurangzeb outlined a reform agenda that includes rebuilding trust in tax administration, deepening and widening the tax base, and shifting economic policymaking to the finance division while positioning the FBR primarily as a revenue authority. He said 24 state-owned enterprises have been transferred to the Privatisation Commission as part of the government’s restructuring push.

Officials briefed the IMF that flood damages total about Rs371 billion, prompting a downward revision in the GDP growth target for FY26 from 4.2% to 3.9%. The minister said recent outreach in Beijing, Riyadh and New York yielded encouraging signals on investment and market access, calling the moment an opportunity for private-sector-led growth.