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Rs115bn Flood Rehabilitation Project Restructured

Rs115bn Flood Rehabilitation Project Restructured, Housing Target Capped at 69,000 Homes

Pakistan’s Rs115 billion World Bank-funded flood rehabilitation project has been restructured, with housing support in Balochistan being limited to around 69,000 homes. More than 134,000 verified flood-affected families may be left without the resilient housing originally promised. Investigations have reportedly been launched into alleged record tampering, duplicate claims and multiple payments. The $155 million housing component under IFRAP has now been capped, while the World Bank’s proposed $180 million additional financing has been dropped.

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Local Affairs

August Inflation Hits 11.15%, Rising From 9.2% in July

Pakistan’s annual consumer price inflation surged to 11.15% in August 2026, up from 9.2% in July, according to the Pakistan Bureau of Statistics. Urban inflation accelerated to 10.4%, while rural inflation remained above both the national and urban rates. On a month-on-month basis, urban prices increased by 0.9%, signaling stronger inflationary pressure across the country.

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PM Shehbaz Arrives in Bishkek

Prime Minister Shehbaz Sharif has arrived in Bishkek for the SCO Council of Heads of State meeting and SCO Plus Summit. During his three-day official visit to Kyrgyzstan, Pakistan will assume the chairmanship of the SCO Council of Heads of State for 2026–2027. The prime minister will also hold bilateral meetings with participating leaders and is accompanied by senior cabinet members and government officials.

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Engro to Sell EPCL Stake for Rs19.7bn

Engro Corporation Limited has signed a share purchase agreement with Lotte Chemical Pakistan Limited to sell its entire 56.19% stake in Engro Polymer & Chemicals Limited. The transaction is valued at approximately Rs19.7 billion, equivalent to around $70.95 million. The agreement follows Engro’s 2025 restructuring, which established Engro Holdings as the conglomerate’s investment arm.

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