ISLAMABAD, Oct 17 (APP): Federal Minister for Planning, Development and Special Initiatives Professor Ahsan Iqbal on Friday said Pakistan suffered a loss of more than 1,000 lives, damages of around Rs822 billion (approximately $2.9 billion) after the recent floods caused a widespread destruction of homes, infrastructure and essential public services.
Addressing a press conference, the minister said the government has compiled the initial flood damage assessment report and submitted it to the Prime Minister.
“This is an estimate of damages, not the total economic losses,” Iqbal clarified, adding that a detailed post-disaster needs assessment (PDNA) is currently underway to determine the complete economic impact.
According to the report, losses in the agriculture sector were the most significant, with damages estimated at Rs430 billion, followed by infrastructure losses amounting to Rs307 billion.
The minister said a total of 312,000 houses were affected nationwide, including 213,000 in Punjab, 6,370 in Balochistan, 3,222 in Khyber Pakhtunkhwa, 3,677 in Azad Jammu and Kashmir and Gilgit-Baltistan, and 332 in Sindh.
He added that 2,811 kilometres of roads were damaged, over 2,200 educational institutions were affected, and 250 health facilities were either damaged or destroyed. Additionally, 866 water infrastructure systems were also impacted.
Iqbal said the livestock sector suffered significant losses, with over 2,200 animals lost, while major crop losses included 3.4 million bales of cotton, one million tonnes of rice, and an estimated 1.3 to 3.3 million tonnes of sugarcane—depending on regional water drainage conditions.
Despite the destruction, the minister highlighted signs of economic stability and resilience. He stated that in the first quarter (July–September) of FY2025–26, the Consumer Price Index (CPI) inflation dropped to 4.2%, compared to 9.2% during the same period last year.
“FBR tax collection increased by 12.5%, reaching Rs2,884 billion in the first quarter, compared to Rs2,563 billion collected during the same period last year,” Iqbal added.
The Pakistan Stock Exchange (PSX) index reached a historic high of 169,000 points on October 3, reflecting growing investor confidence.
He noted that credit to the agriculture sector grew by 19.5%, reaching Rs404 billion compared to Rs338 billion last year. Meanwhile, credit to the private sector increased by 16%, rising from Rs8.6 trillion to Rs9.9 trillion, indicating robust private sector activity and investment.
Remittances from overseas Pakistanis also showed improvement, increasing by 8.4% to $9.5 billion in the first nine months of the current fiscal year.
Regarding development spending, the minister said that Rs155 billion had been authorized under the Public Sector Development Programme (PSDP) during July–September, of which Rs63 billion had already been disbursed.
He added that PSDP expenditure increased by 16% compared to the same period last year, and allocations for foreign-aided projects saw a 23% rise. Nine development projects—three through the Central Development Working Party (CDWP) and six by the Executive Committee of the National Economic Council (ECNEC)—were approved and are expected to create around 166,000 jobs.
“The Ministry has achieved its target of 100 percent project monitoring to ensure timely execution,” Ahsan Iqbal said.
On the international front, the minister announced that Phase 2 of the China-Pakistan Economic Corridor (CPEC) has officially begun. He said that following the 14th Joint Cooperation Committee (JCC) meeting in China, it was agreed that the upgradation of the Karakoram Highway would start immediately, with 85% financing provided by the Chinese government.
He further stated that cooperation with China’s Hunan Province would be expanded to enhance provincial-level engagement in CPEC projects.
Turning to global diplomacy, Iqbal lauded Pakistan’s role in facilitating a ceasefire in Gaza and supporting the release of Palestinian prisoners.
“Our efforts have been recognized internationally, including by US President Donald Trump,” he said, noting that Pakistan’s ties with Saudi Arabia and the United States have also entered a new phase, marked by a recent mutual defense agreement with Saudi Arabia.
Looking to the future, the minister announced that 2026 would be declared the ‘Year of Reform and Modernization’, with the government launching a national agenda aimed at initiating deep structural reforms across governance, regulation, and economic systems.
He emphasized that outdated administrative structures are hindering Pakistan’s economic progress.
“The frameworks we built 40 to 50 years ago cannot address the needs of a 21st-century economy,” Iqbal stressed, adding that inefficiencies and anti-business bias must be addressed to unlock the country’s full potential.
He said the reform agenda would focus on three pillars: economic modernization, investment-friendly regulatory reform, and citizen-centric governance.
“These reforms will not just remain on paper or in speeches—they will become a national movement to redesign and re-energize our governance systems,” the minister concluded.