UN calls for additional funding to maintain ‘lifesaving’ response to Pakistan flood affectees
UN calls for additional funding to maintain ‘lifesaving’ response to Pakistan flood affectees/node/2202476/pakistan
UN calls for additional funding to maintain ‘lifesaving’ response to Pakistan flood affectees
Men perform ablution with the flood water, following rains and floods during the monsoon season in Bajara village, at the banks of Manchar lake, in Sehwan, Pakistan September 6, 2022. (REUTERS/FILE)
ISLAMABAD: The United Nations (UN) has called for additional funding to meet urgent needs of and maintain a “lifesaving” response to the flood-affected people in Pakistan, a deputy spokesperson for the UN secretary-general said on Friday, informing the organization’s $816 million humanitarian appeal has so far been funded only 21 percent.
Climate-induced floods have affected more than 33 million people and caused over $30 billion in economic losses, with more than five million people displaced across Pakistan since the onset of monsoon season in mid-June, according to official estimates.
The UN in October revised up its humanitarian appeal for Pakistan to $816 million from an initial $160 million after assessing the extent and magnitude of the damages, while a Pakistani delegation at the UN-organized COP27 summit in Egypt this month called for “climate justice,” hoping to use the summit to get the world to commit to helping countries like Pakistan deal with climate-related “loss and damage.”
“We are calling for additional funding to maintain the lifesaving response,” Farhan Aziz Haq, a deputy spokesperson for the UN secretary-general, said in a briefing in New York on Friday.
“The $816 million humanitarian appeal launched by the UN and the Government of Pakistan is currently just 21 percent funded.”
Climate negotiators were locked in efforts to break the deadlock at UN COP27 talks Friday as nations tussle over funding for developing countries battered by weather disasters and ambition on curbing global warming.
Representatives from nearly 200 countries have gathered at the COP27 in Egypt for two weeks with the aim of driving forward action on climate change as the world faces a worsening onslaught of weather extremes.
As the summit in the Red Sea resort of Sharm el-Sheikh spilled into overtime late Friday, the controversial issue of climate “loss and damage” funding remained a key flashpoint.
Haq said the catastrophe was far from over as more than 5 million Pakistanis had yet to return to homes more than three months since the deadly floods inundated a third of the South Asian country.
“Food and livelihood assistance has reached 4.1 million people, while 1.5 million people have received emergency shelter kits, blankets, bedding, and kitchen sets,” he detailed.
“Our partners have provided health assistance to 1.5 million people, while more than 1.7 million people have received clean water.”
While access to clean water, sanitation and hygiene remained a challenge, people affected by floods are even more vulnerable with the winter beginning to set in and many need adequate shelter, Haq said.
“Millions of people face increased food insecurity as families are returning home to destroyed houses, ruined crops and dead livestock,” he added.
ISLAMABAD: Pakistani pilgrims returning from Saudi Arabia on Wednesday praised the smooth organization and facilities provided during this year’s Hajj, despite facing intense heat in the holy cities of Makkah and Madinah.
Pakistan’s post-Hajj flight operation began with the arrival of PIA flight PK732 in Islamabad earlier in the day, carrying 307 pilgrims. According to the Ministry of Religious Affairs, a total of seven flights are scheduled to transport 1,496 pilgrims to Islamabad, Lahore, Multan and Karachi on the first day of the repatriation operation.
“A total of seven flights carrying 1,496 pilgrims will land on June 11, while the post-Hajj flight operation will conclude on July 10 with the last flight landing in Islamabad,” Muhammad Umer Butt, spokesperson for the religious affairs ministry, informed.
Speaking to Arab News at Islamabad International Airport, returning pilgrims praised the Hajj experience, describing it as spiritually uplifting and logistically smooth, crediting the Saudi authorities for their efforts.
“It [Hajj] was very good and an amazing experience,” said Muhammad Waseem from Attock. “It was very hot, but the Saudi government had made good arrangements— there was water and fans everywhere.”
He said the Saudi authorities had taken excellent care of the pilgrims and ensured things remained smooth.
Those who followed their group schedules found the experience far less strenuous, he continued.
“Only those people got tired and faced difficulties who did not follow their scheduled timings fixed by the authorities for different groups for the Hajj rituals,” he noted.
Abdul Malik, a pilgrim from Lakki Marwat in Khyber Pakhtunkhwa, echoed similar sentiments.
“The arrangements were very good,” he said. “When Allah calls a person to visit His House and the Mosque of His Prophet [PBUH], it feels as if the person is soaring in the air. Such is the feeling which cannot be described in words.”
Samina Bibi from Islamabad called her Hajj deeply spiritual and fulfilling.
“My experience of Hajj was very good and I prayed for everyone, including all the Muslims,” she said. “Only Allah Almighty can understand my feelings during Hajj.”
Bibi informed it was her second visit to the Holy Places, having previously performed Umrah, and found the arrangements to be “very good.”
Abdul Haq, another pilgrim from Islamabad, reflected on the ease with which his journey unfolded.
“When I intended to perform Hajj, after that, Allah made everything easy upon easy, and we prayed for everyone including Muslims sitting in front of the Holy Kaaba,” he said. “The arrangements made by the Saudi government were excellent. We faced no difficulties during Hajj.”
While he acknowledged the natural hardships due to the heat in Mina and Muzdalifah, Haq said the experience remained “smooth and truly unforgettable.”
“In Hajj, there were not really difficulties, but there is hardship, mainly due to the heat,” he added. “However, overall, our Hajj was so wonderful that it’s beyond words, and we kept thanking the Saudi government for all the arrangements throughout.”
This year’s Hajj pilgrimage took place from June 4 to June 9, drawing millions of pilgrims to the holy cities.
Pakistan, which sent over 116,000 pilgrims under both government and private schemes, was among several countries managing large-scale contingents in the annual Islamic pilgrimage.
ISLAMABAD: Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar will travel to New York next week to attend a high-level United Nations conference on the peaceful settlement of the Palestinian question, the Foreign Office said on Tuesday.
The International Conference on the Peaceful Settlement of the Question of Palestine and the Implementation of the Two-State Solution will take place at the UN headquarters from June 17-19.
The visit underscores Islamabad’s continued diplomatic support for the Palestinian cause amid the latest Israeli military offensive in Gaza, which began in October 2023. Around 54,000 people have been killed in the besieged enclave since, mostly women and children.
“DPM/FM shall be traveling to US to attend High-Level Segment of the International Conference on the Peaceful Settlement of the Question of Palestine and the Implementation of the Two-State Solution to be held at UN New York from 17-19 June 2025,” the Foreign Office said in a brief statement.
During his visit, Dar is expected to meet with counterparts from other member states and reaffirm Pakistan’s call for an immediate ceasefire, unimpeded humanitarian access, and a just and lasting resolution to the conflict in line with UN and OIC resolutions.
The conference comes amid renewed international efforts to revive stalled negotiations and de-escalate tensions in the region.
Pakistan has long advocated for a two-state solution based on pre-1967 borders, with East Jerusalem as the capital of an independent Palestinian state.
Islamabad does not recognize Israel and has consistently condemned Israeli military actions in Gaza, especially following Israel’s latest offensive in response to Hamas-led attacks in late 2023, which have resulted in widespread casualties and a humanitarian crisis.
KARACHI: Analysts, investors and key business chambers on Wednesday broadly welcomed Pakistan’s federal budget for 2025-26 as a “balanced” attempt at fiscal consolidation and economic stimulus, though they raised concerns about the achievability of the government’s ambitious growth target of 4.2 percent and heavy reliance on existing taxpayers.
Presenting the federal budget on Tuesday, the government announced a range of tax reforms, spending priorities, and incentives aimed at maintaining its ongoing $7 billion International Monetary Fund (IMF) loan program while also trying to revive investor sentiment and ease pressure on the salaried class.
“The budget announced by the government yesterday [Tuesday] was pretty much in line with what we were expecting, a balanced budget,” said Sana Tawfik, head of research at Arif Habib Ltd, a major Pakistani financial services company.
“The government tried to ensure that the reforms being undertaken currently are on track and Pakistan continues with the fiscal consolidation phase.”
Tawfik was pointing to several key ongoing fiscal and structural reforms that align with Pakistan’s commitments under the IMF program and broader efforts to stabilize the economy.
These include fiscal consolidation through broadening the tax base, rationalizing subsidies, and phasing out tax exemptions; revenue mobilization though increased taxation on interest income, a phased reduction in the super tax and the removal of certain tax exemptions to improve revenue collection; and debt rationalization by managing debt servicing costs, likely by shifting to more concessional financing and restructuring high-cost debt.
While presenting the budget, the government also maintained it would continue its focus on providing relief to the salaried class and try to strike a balance between austerity with social protections.
This handout photograph taken on June 10, 2025, and released by Pakistan's National Assembly shows Finance Minister Muhammad Aurangzeb presenting the 2025–26 fiscal budget at the Parliament House in Islamabad. (AFP)
Tawfik agreed that the government had attempted to strike such a balance between providing relief and raising revenue, citing relief measures for the salaried class in the budget and the phased reduction in super tax.
“The government tried to make sure that we continue with the reforms that we have undertaken in the recent past, while ensuring that we meet the targets set for the upcoming fiscal year,” Tawfik said.
UNREALISTIC GROWTH TARGET?
However, Tawfik was skeptical of the government’s 4.2 percent GDP growth target, calling it “unrealistic” in the current economic context.
“Agriculture has been underperforming, and industries have not been performing due to the high cost of doing business. While we have seen interest rates coming down, agriculture would be the key sector to look forward to,” she said.
Arif Habib Ltd. has forecast GDP growth of around 3.6 percent for FY26, below the government’s target.
Tawfik also noted that while the government had projected inflation at 7.5 percent, her team expected it to be slightly lower, around 6 percent to 6.5 percent, although risks remained from global commodity prices, exchange rate pressures and the fading base effect.
She also flagged a projected current account deficit for FY26, in contrast to a surplus of $1.5 billion expected this fiscal year, citing pent-up demand and increased imports.
Muhammad Waqas Ghani, head of research at JS Global Capital Ltd., echoed the sentiment that the budget was more “measured” compared to previous years.
“In the last two years, we’ve seen very strict budgets. This time, the government has been a little lenient. We’ve seen reform measures but also some relaxations,” Ghani said.
He pointed to tax relief for the salaried class and incentives for the construction sector, though he noted that the Public Sector Development Programme (PSDP) allocation had decreased.
Corporate employees watching television screens as Pakistan Finance Minister Muhammad Aurangzeb presents Pakistan’s $62 billion federal budget for fiscal year 2025–26, in Islamabad on June 10, 2025. (APP)
“There are many allied industries that benefit when we see measures taken for construction,” he said, while noting a less favorable outcome for the auto sector.
Ghani acknowledged the government’s target of a 2.4 percent primary surplus as “optimistic,” but achievable, and described the overall budget as “laying the groundwork” for sustained economic growth.
On the 4.2 percent GDP target, he noted:
“It’s an optimistic target… but with interest rates coming down, we hopefully will see contribution from [agriculture and industrial] segments, and we can get closer to the target.”
STRONG SUPPORT FROM EQUITY MARKETS
While the budget drew applause for investor-friendly policies and efforts toward macroeconomic stability, analysts cautioned that delivery on ambitious fiscal and growth targets remained key to sustaining momentum.
The stock market, however, responded positively from the opening bell.
“As soon as the market started today [Wednesday], it rallied close to 1,400 points,” Ghani said.
“We are in an IMF program and we’re seeing a decent budget this time. All of these things point to the fact that the market is going to reach new heights in the coming months.”
Indeed, despite macroeconomic challenges, the budget drew strong support from equity markets.
“Measures we have seen so far are broadly positive for the stock market,” said Tawfik. “The government kept capital gains tax and dividend income tax unchanged, which the market had feared would be increased.”
Sector-specific measures were seen as favorable for cement, steel, and textile sectors, particularly with subsidies for low-cost housing and removal of sales tax exemptions for certain regions, which levels the playing field for local manufacturers.
“Intraday today, market has gone north of 124,000 points, and we have seen an intraday surge of 2,000 points,” Tawfik said.
DIVIDED BUSINESS COMMUNITY
The reaction from Pakistan’s business chambers, however, was more mixed.
Both the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), and the Karachi Chamber of Commerce and Industry (KCCI), warned that unless structural reforms were implemented and energy costs reduced, the budget may not succeed in spurring industrialization or export growth.
The FPCCI welcomed certain relief measures, particularly for the salaried class and property sector, but flagged concerns about revenue expectations.
“We welcome steps to end harassment of taxpayers,” said Atif Ikram Sheikh, President FPCCI, noting the simplified tax return form as a positive step.
However, he added: “The increase in tax collection target by Rs2,500 billion ($8.8 billion) is unrealistic.”
The FPCCI also expressed disappointment over the absence of support packages for key sectors such as IT, minerals, fishing, and e-commerce.
People walk past the Karachi Chamber of Commerce & Industry building in Karachi on May 4, 2024. (AN Photo/File)
The KCCI, by contrast, issued a harsh critique of the budget, calling it disconnected from ground realities.
“This is a camouflage budget,” said Zubair Motiwala, Chairman of the Businessmen Group (BMG) at KCCI. “There is no meaningful relief for the business community or the common man. Instead of reforms to expand the tax base, the government is squeezing existing taxpayers.”
KCCI President Muhammad Jawed Bilwani added:
“Electricity bills are unaffordable, interest rates are high, and there’s no relief for the industrial sector. Without addressing the cost of doing business, you cannot expect growth or job creation.”
KARACHI: Federal Minister for Finance and Revenue Muhammad Aurangzeb on Wednesday underscored the significance of sweeping tariff reforms built into the federal budget, calling them a structural economic shift aimed at making exports more competitive and lowering the cost of importing raw materials to support export-led growth.
The minister highlighted the development during a post-budget press conference after presenting the finance bill in the National Assembly a day earlier. The proposed federal budget for FY2025-26 includes a total outlay of Rs17.57 trillion ($62 billion), while promising a 4.2% growth target and a reduction in the fiscal deficit to 3.9% of GDP.
Aurangzeb told journalists in Islamabad the government had removed additional customs duties on 4,000 out of 7,000 total tariff lines and reduced base customs duties on 2,700 tariff lines. Of these, 2,000 tariff lines are directly linked to raw materials and intermediate goods used by exporters.
“This is a big reform that has not been done over the last 30 years,” he said, adding the objective was to lower production costs for exporters and enable them to better compete in international markets.
“We are going to fundamentally change the DNA of the economy so that when we go toward growth, we don’t get into a dollar situation, we don’t get into a balance of payments problem,” he said. “We can continue to grow at a certain pace, which is export-led.”
Defending the reforms against criticism that they may lower revenue, the minister argued the long-term gains for the export sector outweigh short-term fiscal concerns.
“If we want an export-led economy, these are the steps we must take,” he added.
Aurangzeb also emphasized new legislation and enforcement tools, saying they were going to be key in plugging leaks and ensuring compliance.
“We have laws and taxes,” he said, “but without enforcement, they don’t work — and that’s what we’re focused on this year.”
ISLAMABAD: Prime Minister Shehbaz Sharif will meet United Arab Emirates (UAE) President Sheikh Mohamed bin Zayed Al Nahyan during an official visit to the Gulf state tomorrow, with discussions expected to focus on economic cooperation and recent regional developments, the Pakistani foreign office said on Wednesday.
Sharif’s trip comes amid Pakistan’s deepening ties with Gulf nations, including the UAE, as it strives to revive its economy through export-led growth and foreign investment.
The UAE is Islamabad’s third-largest trading partner and a major investor. It is also home to over a million Pakistani expatriates and has been a critical ally during Islamabad’s recent financial crisis, depositing funds in Pakistan’s central bank to help unlock International Monetary Fund (IMF) assistance.
“Prime Minister Muhammad Shehbaz Sharif will undertake an official visit to the United Arab Emirates on 12 June 2025,” the foreign office said in a statement.
“Prime Minister Sharif will hold high-level meetings with the UAE leadership, including a bilateral meeting with the President of the UAE and Ruler of Abu Dhabi, Sheikh Mohamed bin Zayed Al Nahyan,” it added. “A wide range of bilateral, regional and global issues of mutual interest and concern will be discussed during the high-level interactions.”
The foreign office said the visit reflected the “deep-rooted fraternal ties” between the two countries, marked by “mutual trust, shared values and close cooperation across multiple sectors.”
In January 2024, Pakistan and the UAE signed agreements exceeding $3 billion for cooperation in railways, economic zones and infrastructure.
Last month, Sharif held a phone call with the UAE president in which he expressed satisfaction over growing ties and pledged to transform the relationship into a “mutually beneficial economic partnership.”
During the call, the two leaders also discussed tensions between Pakistan and India that recently escalated into cross-border hostilities involving missile strikes, drones and artillery fire.
Sharif thanked the UAE for its “constructive diplomatic role” in defusing the crisis and said the Gulf nation had “always stood by Pakistan, through thick and thin.”
The UAE is also a strategically favorable destination for Pakistan due to its proximity, minimizing freight costs. The prime minister’s visit is expected to reinforce ongoing economic cooperation and explore new areas of strategic partnership.
