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Inflation surges to 5.6% as floods disrupt food supply chains

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Inflation surges to 5.6% as floods disrupt food supply chains

By Farooq Awan
ISLAMABAD, Oct 18 (Wealth Pakistan): Pakistan’s inflation surged to 5.6 percent in September 2025, up sharply from 3 percent in August, as record-breaking floods devastated crops, disrupted supply chains, and pushed up food and transport costs, according to the Planning Ministry’s Preliminary Flood Damage Assessment Report.

Floods Hit Crops and Supply Networks

The ministry attributed the spike to widespread destruction of agricultural output and infrastructure that constricted the supply of essential commodities. “Recent floods devastated crops, damaged infrastructure and disrupted supply chains, triggering an abrupt rise in food prices,” the report noted.

The floods destroyed large tracts of cotton, sugarcane, rice, maize, and vegetables—Pakistan’s key staples—causing food scarcity across several provinces. The agriculture sector, which contributes nearly one-fifth of GDP, has seen losses estimated at Rs 430 billion and growth downgraded to 3.0–3.8 percent, against a 4.5 percent target for FY2026.

Supply-Side Shocks Drive Up Costs

The resulting shortage of locally produced staples, combined with damaged road and storage networks, drove up transport costs and curtailed market access. “The floods have created both supply-side and logistical shocks,” the document said, warning that food inflation would remain elevated in coming months as new crops fail to reach markets on time.

Trade Deficit Expected to Widen

Pakistan’s external trade has also been hit hard. Exports of rice, a key earner that brought in $3.35 billion last fiscal year, are projected to fall by $450 million in FY2026. Meanwhile, imports of raw cotton, wheat, and pulses are expected to rise to meet domestic shortfalls. The ministry cautioned that these pressures would likely widen the trade deficit and strain foreign-exchange reserves.

Inflationary Pressures from Global Markets

Economists cited in the report warned that inflation could further accelerate if global commodity prices remain volatile. The report highlighted that the strong dollar and high international shipping costs continue to push import prices upward, compounding domestic disruptions.

“Sowing of Rabi crops, including wheat, may be delayed due to the slow receding of floodwater in southern Punjab and Sindh,” it stated. “This delay in sowing is likely to have diminishing effects on production, putting additional pressure on food inflation.”

Policy Recommendations for Stability

The document suggested that Pakistan must enhance strategic grain reserves, stabilize input supply chains, and strengthen climate-resilient farming to curb future shocks. It also urged targeted subsidies and direct support to vulnerable families to cushion the short-term impact.

Analysts estimate that the inflationary surge could erode purchasing power, widen fiscal pressures, and slow the recovery of rural demand. The ministry underscored that inflation management must now be central to the post-flood recovery framework.

“Without coordinated fiscal, monetary and supply-side measures, price volatility could derail macroeconomic stability,” the report concluded.

Insurance sector assets reach Rs 3.75 trillion in FY25

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Insurance sector assets reach Rs 3.75 trillion in FY25

By Qudsia Bano

ISLAMABAD, Oct 18 (Wealth Pakistan): Pakistan’s insurance industry continued its upward trajectory in fiscal year 2024-25, expanding both in asset size and market sophistication as new regulatory and technological reforms reshaped the sector.

According to the Governor’s Annual Report 2024-25 issued by the State Bank of Pakistan (SBP), total insurance-sector assets rose 13 percent during the first nine months of the fiscal year to reach Rs 3.75 trillion, while the Securities and Exchange Commission of Pakistan (SECP) issued the country’s first licence for a fully digital non-life insurance company — Digi Insurance Limited.

Life and Non-Life Segments Drive Sectoral Growth

The report said that both the life and non-life segments registered broad-based expansion despite subdued macroeconomic conditions earlier in the year.
Life insurance remained dominant, representing over 85 percent of total sector assets. Its asset base grew 13.2 percent, driven by continued inflows into savings-linked and family-protection products.
The non-life segment also performed strongly, with assets up 11.9 percent amid rising demand for health, motor, and property coverage.

The SBP noted that the overall improvement reflects a gradual deepening of risk-management culture in households and enterprises across Pakistan.

Takaful Expands as Ethical Finance Gains Momentum

The report highlighted significant progress in Shariah-compliant insurance (takaful) offerings.
Family Takaful products expanded their share to 15 percent of the life market, while General Takaful reached 14 percent of the non-life portfolio.
The SBP said that the rising popularity of takaful reflects strong consumer preference for ethical finance and aligns with Pakistan’s broader strategy to strengthen Islamic financial systems.

Regulatory Reforms Bring Global Standards

The SECP introduced major structural reforms, including transition toward risk-based supervision (RBS) and adoption of IFRS-17 Insurance Contracts, improving transparency and solvency monitoring.
Under this regime, insurers must assess capital adequacy relative to risk profiles instead of fixed thresholds — aligning Pakistan’s prudential standards with international norms.

National Insurance Scheme Planned for Informal Workers

Efforts were also intensified to expand coverage among low-income and informal-sector workers.
A proposal for a National Insurance Scheme is being developed to provide basic life and health protection to informal employees.
Parallel amendments in provincial labour laws aim to mandate group-health and accident insurance for a wider segment of the workforce, complementing Pakistan’s social-protection agenda.

Digi Insurance Marks Start of Digital Transformation

Digitalization emerged as a key milestone during FY25. The SECP’s decision to license Digi Insurance Limited — Pakistan’s first fully digital non-life insurer — marked a turning point for the sector.
Operating entirely online, Digi Insurance will issue policies, collect premiums, and process claims electronically, lowering distribution costs and reaching underserved consumers through smartphones.

The SBP termed this move a “milestone toward technology-driven inclusion,” aligning it with national digital-finance initiatives like Raast Payments Pakistan and PRISM+.

Insurance Penetration Still Low but Poised to Rise

Despite these advances, Pakistan’s insurance penetration remains at 0.7 percent of GDP, showing significant untapped potential.
The SECP plans to diversify products into agriculture, livestock, and climate-risk coverage, addressing the country’s vulnerability to extreme weather events.

The SBP emphasized that higher insurance uptake could mobilize long-term savings, reduce reliance on short-term bank funding, and strengthen the domestic capital market.

Reforms Strengthen Financial Stability and Inclusion

The report cited ongoing collaboration among the SECP, SBP, and Ministry of Finance to harmonize regulations and expand risk-transfer mechanisms such as reinsurance pools for catastrophe risks and insurance-linked collateral protection for agricultural loans.

Industry analysts attributed the sector’s resilience to disinflation, lower interest rates, and a stable exchange rate — all of which have boosted consumer confidence and long-term savings.

Outlook: Double-Digit Growth Expected

Concluding the review, the SBP said the FY25 performance demonstrates growing institutional depth and readiness for technological transformation.
With regulatory modernization, digital innovation, and expansion of Islamic finance, the insurance sector is emerging as a core pillar of Pakistan’s financial inclusion and investment ecosystem.

Pakistan’s tractor industry faces policy, inflation and financing challenges

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Pakistan’s tractor industry faces policy, inflation and financing challenges

By Azeem Ahmed Khan
ISLAMABAD, Oct 18 (Wealth Pakistan): Pakistan’s tractor manufacturing industry has expanded steadily over the past decade, with several new players entering the market. However, inconsistent government policies, inflationary pressures, and high financing rates continue to pose serious challenges to its sustainable growth, according to a spokesman of the Pakistan Automotive Manufacturers Association (PAMA).

New Entrants Boost Competition in Tractor Manufacturing

The PAMA spokesman told Wealth Pakistan that the sector has grown with the entry of new manufacturers such as ATS, Buraq, and Guard World. However, overall sales have remained volatile due to frequent changes in tax policies, fluctuating import duties, and unpredictable government interventions, including short-term subsidy schemes and regulatory shifts.

Pakistan’s cumulative tractor production capacity currently stands at around 80,000 units per year. Rising input costs—driven by inflation and currency devaluation—have sharply raised the prices of imported parts, while floods and high financing rates have squeezed farmers’ purchasing power.

Frequent Tax Changes Disrupt Industry Stability

The spokesman pointed out that frequent changes in sales tax rates—from 10 percent to 5 percent, then to zero, and abruptly to 14 percent—have further raised tractor prices and weakened sales.
“A consistent sales tax regime is essential for stable growth of the tractor industry,” he stressed.

He added that the complex GST refund process ties up manufacturers’ working capital and unpredictable policy shifts create uncertainty that discourages long-term investment planning.

Green Tractor Scheme Benefits Limited to Punjab

According to the PAMA spokesman, small and subsistence farmers remain unable to afford tractors due to high upfront costs, relying instead on rental services for cultivation.
“The government’s Green Tractor Scheme, which provides subsidized tractors, is confined to Punjab and distributed through a balloting system. This limits its reach and excludes many eligible farmers in other provinces,” he said.

The limited implementation, he noted, has reduced its overall impact on farm mechanization, created regional imbalances, and disrupted industry planning. He suggested that instead of fixed quotas, a general subsidy of 10 to 20 percent should be offered to all eligible farmers nationwide.

High Interest Rates Restrict Tractor Financing

While financing options exist, high interest rates remain a major obstacle. “Millat Tractors, for example, partners with Bank Alfalah and Bank of Khyber to offer discounted prices and KIBOR-linked loans, with markups between KIBOR −0.05% and KIBOR +2%. Government financing is currently offered at 7%, which is still high for small farmers—especially compared to India’s 0% financing,” he explained.

Tractor Exports Expand to Africa and Afghanistan

Despite domestic challenges, Pakistani tractors have started to enter export markets. Millat Tractors exported around 2,600 units during 2024–25, with major buyers in Afghanistan, Tanzania, Kenya, Nigeria, and Madagascar.
With about 90 percent local content, Pakistani tractors are competitively priced and attractive to price-sensitive markets, though they face competition from Indian and Chinese brands in technology and after-sales service.

Stable Policies Needed for Long-Term Growth

The spokesman emphasized that tractors are vital for modern agriculture, enabling farmers to cultivate larger areas efficiently, reduce labor costs, and improve crop yields.
He urged the government to adopt stable and transparent policies to ensure sustained growth.

“A consistent sales tax regime, fair subsidy structure, and reduced financing rates—ideally around 3.5 percent through banks—would encourage investment in farm machinery,” he said. “Allocations should be based on clear eligibility criteria rather than balloting so that support reaches genuine farmers.”

Non-bank financial institutions post 42 percent growth in 2024-25

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Non-bank financial institutions post 42 percent growth in 2024-25

By Moaaz Manzoor
ISLAMABAD, Oct 18 (Wealth Pakistan): Pakistan’s non-bank financial institutions (NBFIs) recorded exceptional growth in FY25, expanding 41.6 percent — their fastest pace in eight years — to Rs 5.64 trillion in assets, driven primarily by mutual funds, the State Bank of Pakistan reported in its Governor’s Annual Report 2024-25.

NBFIs’ Share in Financial Assets Rises to 7.5 Percent

The report said the NBFI sector’s share in total financial assets increased to 7.5 percent as investors sought diversified savings options in a declining-interest-rate environment. The fund-management segment dominated the industry, accounting for 91 percent of NBFI assets at end-June 2025.
Mutual-fund portfolios alone grew 45 percent to Rs 3.93 trillion, led by income and money-market funds during the first half of the year when banks redirected liquidity toward NBFIs to meet advance-to-deposit-ratio requirements.

Corporate Investors Return to Mutual Funds

Although temporary outflows occurred after withdrawal of that tax-linked policy, inflows resumed in the final quarter as corporate investors returned following amendments to the Minimum Deposit Rate rules that excluded institutional deposits. This change made mutual funds a more attractive alternative for corporates seeking higher yields.

Fund-Management and Lending Segments Show Strong Momentum

The SBP said other fund-management vehicles, including discretionary and non-discretionary portfolios, also expanded 35 percent to Rs 776 billion. On the lending side, growth was equally strong: non-bank microfinance companies increased assets 51 percent to Rs 297 billion, while modarabas and investment-finance companies posted gains of 24 and 15 percent, respectively.
The addition of new entities and improving macroeconomic conditions further supported this rebound.

Lending Share Declines Slightly but Absolute Growth Remains Robust

According to the report, the lending segment’s share declined slightly to 8.8 percent of total NBFI assets, yet its absolute expansion contributed significantly to financial intermediation. Lower interest rates, easing inflation, and renewed investor confidence spurred demand for capital-market instruments.
The SBP viewed this surge as evidence of a maturing non-bank ecosystem that complements the banking sector by channeling savings into productive investment.

Reforms Strengthen Pakistan’s Financial Architecture

The central bank said NBFIs’ growth enhances competition, deepens the domestic capital market, and broadens financing sources for businesses. The sector’s stability also benefits from regulatory oversight by the Securities and Exchange Commission of Pakistan, which continues to align prudential frameworks with international standards.
Together, these reforms are expected to strengthen Pakistan’s financial architecture.

Punjab to set up export-processing zone near Khewra mines

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Punjab to set up export-processing zone near Khewra mines

LAHORE, Oct 18 (INP–Wealth Pakistan) – The Punjab salt export-processing estate is being developed by the Punjab government as a dedicated industrial zone to expand pink-salt exports, attract new investment, and promote value-added mineral production in Pakistan’s salt sector.

Project location and development plan

According to official sources, the project will be implemented by the Punjab Mines and Minerals Department. A detailed plan has been prepared to establish the Punjab salt export-processing estate near the Khewra Salt Mines, which contain the world’s second-largest rock-salt reserves.
The location was selected to reduce transport costs and provide direct access to raw materials, allowing efficient processing and packaging for export.

Industrial infrastructure and investment potential

A senior officer of the department told Wealth Pakistan that Pakistan has yet to fully tap its salt industry potential. “We must unlock the true value of our salt reserves to earn foreign exchange for the country,” he said.
He added that the Punjab salt export-processing estate would provide industrial infrastructure, logistics support, and advanced processing facilities. “Through this project, Punjab can attract investors to refine, package, and export pink-salt products,” he explained.

Global demand for pink Himalayan salt rising

The official said that many countries were earning high profits from Pakistan’s pink Himalayan salt by adding value before export. “We need to strengthen our capacity to export refined and branded salt to the Gulf, China, and the European Union,” he said.
In addition, the Punjab salt export-processing estate will help local firms move from raw exports to premium, finished goods. This shift can raise Pakistan’s export earnings and enhance product recognition.

PBIT to facilitate investors

Owais Ahmed, spokesperson for the Punjab Board of Investment and Trade (PBIT), told Wealth Pakistan that the proposal had been presented to the board of directors for approval. “Once approved, PBIT will promote investment, build infrastructure, and connect exporters with international buyers,” he said.
He added that PBIT would also help simplify procedures for investors and coordinate between departments to ensure smooth project execution.

Economic and branding benefits

Officials believe that the Punjab salt export-processing estate will increase mineral exports, create jobs, and strengthen Pakistan’s global branding of pink salt. “Made in Pakistan” pink salt is expected to emerge as a premium product worldwide.
Moreover, the project will support sustainable mining, promote technology transfer, and encourage innovation in mineral processing. Therefore, the estate will play a vital role in expanding industrial activity and export growth.

Islamic banking, SME and agriculture finance expand rapidly in 2024-25

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Islamic banking, SME and agriculture finance expand rapidly in 2024-25

By Farooq Awan

ISLAMABAD, Oct 18 (Wealth Pakistan): Pakistan’s Islamic-banking, small-enterprise, and agricultural-finance segments recorded exceptional growth in FY25 as supportive regulation and improving macroeconomic stability encouraged credit expansion across productive sectors, the State Bank of Pakistan reported in its Governor’s Annual Report 2024-25.

The SBP said loan disbursements to agriculture increased 16.3 percent surpassing annual targets while outstanding SME financing rose 41 percent alongside a 57 percent jump in the number of SME borrowers.

These advances reflected lower borrowing costs following a 1,100-basis-point reduction in policy rates and a revival in business confidence. Improved liquidity in banks, combined with tax incentives linked to lending ratios, spurred competition for private-sector credit.

Islamic banking institutions also expanded strongly during the year.

Their asset base and deposits grew at double-digit rates, supported by alignment with international Islamic-finance standards and consumer preference for Shariah-compliant products.

The SBP continued to promote this segment through updated prudential guidelines and efforts to enhance liquidity-management instruments compatible with Islamic principles.

The report said Islamic banking now constitutes a significant and fast-growing share of Pakistan’s total banking assets.

The central bank emphasized that expansion in these priority sectors advances multiple policy goals employment generation, rural development, and financial inclusion.

Through its Banking on Equality initiative and targeted credit lines, the SBP directed banks to extend greater financing to women-led SMEs and smallholders.

This resulted in broader geographic dispersion of credit, especially in Punjab and Sindh’s agrarian belts.

Agricultural lending rose across sub-sectors, including livestock and farm-mechanization. The SBP noted that improving input availability and rising demand for modern equipment contributed to higher credit uptake.

Meanwhile, SME lending benefitted from easing inflation, stable exchange rates, and government procurement activity that boosted orders in manufacturing and services.

The report cautioned, however, that sustaining this pace will require continued reforms in collateral management, credit-information systems, and risk-sharing mechanisms.

The SBP plans to upgrade refinancing facilities and enhance data collection on SME and agri-finance flows to evaluate performance accurately.

It said the FY25 experience demonstrates that credit growth can coexist with financial stability when accompanied by prudent oversight.

According to the SBP, Islamic-finance promotion, small-enterprise empowerment, and rural-credit facilitation are mutually reinforcing components of Pakistan’s inclusive-growth framework.

Their success, the report added, strengthens the resilience of the overall financial system and diversifies the economy’s credit base beyond government borrowing.

NGC speeds up Mohmand, Suki Kinari and Kohala hydropower projects

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NGC speeds up Mohmand, Suki Kinari and Kohala hydropower projects

By Ayesha Saba

ISLAMABAD, Oct 18 (Wealth Pakistan) – NGC speeds up Mohmand and Suki Kinari and Kohala hydropower projects to strengthen power evacuation capacity and expand Pakistan’s high-voltage grid in less developed regions, according to official documents available with Wealth Pakistan.

The National Grid Company (NGC) said the accelerated work on these hydropower projects is part of its Transmission System Expansion Plan (TSEP), ensuring faster integration of clean energy into the national grid. For more details, visit the Ministry of Energy (Power Division) website.

Major progress on NGC hydropower projects

With a PC-1 cost of Rs 79.93 billion, the Asian Development Bank (ADB)-funded project achieved a milestone when the 500kV Double Circuit Quad Bundle Transmission Line from Suki Kinari (884MW) to Sangal was successfully energized on June 27, 2024.

Survey and soil investigation work for the remaining lines has been completed. Procurement contracts for towers, conductors, and grounding equipment have been awarded, while deliveries are in progress.

Construction contracts for 500kV Maira–Islamabad and 500kV Maira–Karot lines were signed on July 22, 2025, marking the start of field activities. Further details are available on the Asian Development Bank project database.

Mohmand and Suki Kinari hydropower initiatives advancing

Meanwhile, NGC confirmed that the Mohmand Dam (816MW) evacuation project, valued at Rs 14.319 billion, is progressing on multiple fronts under ADB financing. Completion is expected between 2026 and 2027.

Procurement contracts for conductors, OPGW, and dampers have been finalized, while tenders for towers, circuit breakers, and control panels are under evaluation. Revised bidding documents for surge arrestors are being prepared.

The company noted that its Transmission System Expansion Plan is fully synchronized with the Indicative Generation Capacity Expansion Plan (IGCEP) to ensure reliable and efficient power evacuation.

NGC hydropower expansion to enhance national grid reliability

Officials said that NGC speeds up Mohmand and Suki Kinari and Kohala hydropower projects to ensure grid stability, reduce transmission bottlenecks, and support Pakistan’s transition to clean energy.

They emphasized that while the supply of power to consumers remains under local DISCOs, NGC continues to expand and modernize the national transmission network.

Floods in Pakistan inflict Rs822 billion losses, trim GDP growth to 3.5–3.9%

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Floods in Pakistan inflict Rs822 billion losses, trim GDP growth to 3.5–3.9%

By Farooq Awan

ISLAMABAD, Oct 18 (Wealth Pakistan): Pakistan’s economy has suffered losses exceeding Rs822 billion ($2.9 billion) due to the devastating floods that swept across the country between June and September 2025, reducing the national growth outlook for fiscal year 2026 to between 3.5 and 3.9 percent, against the targeted 4.2 percent.

The Preliminary Assessment of Flood Damages Report released by the Ministry of Planning, Development and Special Initiatives described the 2025 floods as “unprecedented and apocalyptic,” marking one of the worst natural calamities in Pakistan’s recent history.

It confirmed that more than 1,039 lives were lost, over four million people displaced, and around 229,763 houses damaged or destroyed.

For reference, see the Ministry of Planning’s official page at https://www.pc.gov.pk/.

Pakistan flood losses estimated at Rs822 billion

The floods inflicted severe losses on agriculture, infrastructure, housing, energy, and social sectors, prompting the government to revise growth forecasts and shift budgetary priorities towards relief and rehabilitation.

The report estimates that damage to agriculture amounts to Rs430 billion, while infrastructure losses total Rs307 billion. Housing damage has been valued at Rs92 billion, and the power sector has sustained losses of around Rs25 billion.

The floods have also disrupted transportation and supply chains nationwide, contributing to output losses equivalent to 0.3–0.7 percent of GDP.

According to the Asian Development Bank’s climate resilience overview, Pakistan remains among the world’s most climate-vulnerable nations despite contributing less than one percent to global emissions.

Pakistan ranks among top climate risk nations

The report said Pakistan topped the Global Climate Risk Index 2025 as the country most affected by extreme weather events in 2022, reaffirming its position as a frontline state facing climate injustice.

The Planning Ministry’s analysis indicates that Punjab, Sindh, and Khyber Pakhtunkhwa were hit hardest, with rainfall reaching up to 50 percent above monsoon averages in some districts.

Large areas of farmland, roads, and settlements were submerged, while key industries linked to agriculture and energy also suffered production disruptions.

Growth slowdown and unemployment impact

The report projects that the agriculture sector will grow by only 3.0–3.8 percent in FY2026, compared to the earlier target of 4.5 percent.

The industrial sector is expected to expand by 4.1–4.2 percent instead of 4.3 percent, and services are likely to decelerate to 3.5–3.7 percent growth. Unemployment is expected to rise by nearly 0.22 million workers in the current fiscal year.

For background on Pakistan’s economic planning, see World Bank climate resilience resources.

Government pledges climate-resilient recovery

Prime Minister Shehbaz Sharif, in his message included in the report, called the catastrophe a “national tragedy that shattered lives and livelihoods.”

He pledged that the government would adopt a “build back better” approach, focusing on climate-resilient infrastructure and inclusive recovery. “We will transform this moment of crisis into an opportunity to rebuild smarter and stronger,” he said.

Despite the scale of destruction, Pakistan has not yet issued an international appeal for aid, relying first on domestic resources. However, the report noted that several global organizations have already begun extending targeted support.

Recovery strategy and long-term adaptation

The Ministry of Planning emphasized that the post-flood reconstruction strategy would prioritize infrastructure rehabilitation, housing reconstruction, and agricultural revival while aligning fiscal policies to balance humanitarian needs with macroeconomic stability.

“The recovery will demand sustained investment and long-term climate adaptation,” the document concluded, urging coordinated action among federal and provincial agencies, armed forces, and civil society.

Three million people rescued in Pakistan’s national flood relief drive

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Three million people rescued in Pakistan’s national flood relief drive

By Ayesha Saba

ISLAMABAD, Oct 18 (Wealth Pakistan): Pakistan’s nationwide flood-relief campaign has rescued more than three million people, established 949 relief camps, and mobilized thousands of personnel from civil and military institutions in one of the largest humanitarian operations in the country’s history, according to the government’s Preliminary Assessment of Flood Damages Report.

The Ministry of Planning, Development and Special Initiatives, citing data from the National Disaster Management Authority (NDMA) and provincial governments, said that as of September 30, 2025, a total of 5,769 rescue operations had been conducted across the country, saving stranded families, livestock, and essential goods from floodwaters.

“Pakistan’s coordinated response has been unprecedented in scale,” the report stated, noting that the combined efforts of the armed forces, NDMA, provincial administrations, and civil society prevented further loss of life and supported early relief in the worst-affected districts.

For background, see the NDMA official portal.

Flood-relief operations and national coordination

The floods displaced more than four million people, destroyed 229,763 houses, and caused estimated economic losses exceeding Rs822 billion, making rapid rescue and relief the federal government’s top priority.

According to the report, the armed forces were deployed across all provinces to conduct emergency evacuations, deliver food, and repair critical infrastructure. Air assets were vital in Khyber Pakhtunkhwa, Punjab, and Balochistan, where settlements were cut off by collapsed bridges and submerged roads.

Helicopters, boats, and engineering units enabled evacuations from remote areas. The armed forces also established medical camps, distributed rations and safe drinking water, and provided tents for temporary shelter.

The NDMA and provincial disaster agencies set up nearly a thousand relief camps in 70 affected districts, housing displaced families and coordinating health, sanitation, and nutrition services. Over 662,000 people received medical treatment in temporary facilities supported by military doctors, civil administrators, and humanitarian partners.

For more on humanitarian logistics, visit the Asian Development Bank disaster-resilience page.

Civil society and international engagement

Essential supplies distributed nationwide included tents, ration packs, blankets, mosquito nets, hygiene kits, and emergency medicines.

Non-governmental organizations, volunteers, and private philanthropists played a major role, complementing state efforts with local initiatives. The Pakistan Red Crescent Society, faith-based charities, and business groups distributed cooked meals, clean water, and sanitation materials in areas where formal infrastructure remained disrupted.

“The partnership between civil society and the armed forces allowed the national response to reach remote pockets that would otherwise have remained inaccessible,” the Planning Ministry observed.

The government said that despite the scale of need, Pakistan initially relied on domestic resources and internal mobilization rather than issuing an immediate international appeal. However, several international organizations and donor agencies began providing targeted support, especially for health and logistics.

Institutional lessons and future disaster management

Experts cited in the report said the coordinated response showed the growing maturity of Pakistan’s disaster-management system since the NDMA’s creation in 2007.

“This operation has shown that Pakistan can mobilize rapidly when institutions work together,” one analyst noted, adding that sustained recovery requires long-term financing and planning.

The document called for a seamless transition from rescue to reconstruction, emphasizing that short-term humanitarian aid must evolve into durable recovery. It recommended that rehabilitation planning cover livelihood restoration, education continuity, and resilient infrastructure rebuilding.

The ministry urged institutionalizing civil–military coordination under a National Disaster Response Framework to ensure that future emergencies can be met with the same speed and scale. It also proposed developing permanent logistics hubs in vulnerable provinces for faster deployment during crises.

“The 2025 floods tested every layer of Pakistan’s emergency apparatus,” the report concluded. “The collective response—anchored by the armed forces and supported by provincial and civil actors—proved that national resilience is possible through unity, coordination, and climate-informed preparedness.”

For data on ongoing recovery efforts, visit the Ministry of Planning and Development.

Pakistan Railways to reclaim 3,000 acres of land in Sindh

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Pakistan Railways to reclaim 3,000 acres of land in Sindh

By Muhammad Faisal Kaleem

ISLAMABAD, Oct 18 (Wealth Pakistan): Over 3,000 acres of Pakistan Railways land in Sindh are being reclaimed for agricultural use after being retrieved from encroachers, according to a senior PR official who briefed the National Assembly Standing Committee on Railways.

The Divisional Superintendent of PR’s Sukkur Division said that 3,253 acres of Pakistan Railways land in Sindh remain under illegal occupation, while another 457 acres have been grabbed by land mafia.

“The department is actively pursuing recovery operations and expects the issue to be resolved soon,” he said.

He told the committee that Pakistan Railways currently manages 16,458 acres in the Sukkur region, a significant portion of which has already been reclaimed.

For more information, visit the Ministry of Railways official site.

Anti-encroachment drive targets Pakistan Railways land in Sindh

The official said he had personally visited Khanpur, Rohri Yard, Rahim Yar Khan, Sukkur, Pannu Aqil, Mehrabpur, and other areas to supervise anti-encroachment operations.

In response to lawmakers’ queries, he explained that Pakistan Railways follows a defined set of rules for leasing its land to private parties and government organizations.

The committee directed the ministry to present a detailed report on land leases across the country at its next meeting.

Freight Corridor project aims to boost rail cargo

During the proceedings, the committee reviewed progress on Pakistan Railways’ upcoming Freight Corridor Project.

Secretary Railways Syed Mazhar Ali Shah briefed members that the project will start from Kamari in Sindh and connect Karachi Port to Pipri. Two new railway lines are planned to link the corridor with the M-9 Motorway, the dual carriageway connecting Karachi and Hyderabad.

The corridor will enable 17 freight trains to operate daily and aims to improve port logistics and reduce congestion. The first phase is expected to be completed within six months at an estimated cost of US$400 million.

Further details can be found on the CPEC portal, which tracks freight and logistics projects under national connectivity plans.

Committee reviews Jaffer Express blast incident

The committee also discussed the recent Jaffer Express attack, in which an improvised explosive device exploded near Sultan Kot Railway Station in Sindh.

Five bogies derailed, damaging the track and causing minor injuries to seven passengers, including Pakistan Railways employees. Rescue and police teams reached the site promptly, and the injured were shifted to Civil Hospital, Shikarpur.

District administrations and police from Sukkur, Larkana, and Shikarpur supported the relief operation.

The committee recommended increasing patrols in sensitive areas and installing at least three signal jammers in every train to enhance passenger safety.

For updates, visit the Pakistan Railways website.

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