Remote sensing precipitation or precipitation from numerical weather prediction (NWP) is considered to be the best substitute for in situ ground observations for flood simulations in transboundary, data-scarce catchments. This research was aimed to evaluate the possibility of using a combination of a satellite precipitation product and NWP precipitation for better flood forecasting in the transboundary Chenab River Basin (CRB) in Pakistan. The gauge-calibrated satellite precipitation product, i.e., Global Satellite Mapping of Precipitation (GSMaP_Gauge), was selected to calibrate the Integrated Flood Analysis System (IFAS) model for the 2016 flood event in the Chenab River at the Marala Barrage gauging site in Pakistan. Precipitation from the Global Forecast System (GFS) NWP, with nine different lead times up to 4 days, was used in the calibrated IFAS model to predict the flood hydrograph in the Chenab River. The hydrologic simulations, with global GFS forecasts, were unable to predict the flood peak for all lead times. Then, the Weather Research and Forecasting (WRF) model was used to downscale the precipitation forecasts with one-way and two-way nesting approaches. In the WRF model, the CRB was centered in two domains of 25 km and 5 km resolutions. The downscaled precipitation forecasts were subsequently supplied to the IFAS model, and the predicted simulations were compared to obtain the optimal flood peak simulation in the Chenab River. It was found in this study that the simulated hydrographs, at different lead times, from the precipitation of two-way WRF nesting exhibited superior performance with the highest R² and Nash–Sutcliffe efficiency (NSE) and the lowest percent bias (PBIAS) compared with one-way nesting. Moreover, it was concluded that the combination of GFS forecast and two-way WRF nesting can provide high-quality precipitation prediction to simulate flood hydrographs with a remarkable lead time of 96 h when applying coupled hydrometeorological flow simulation.