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KARACHI, June 13, 2026: President of the United Business Group (UBG) and former FPCCI President Zubair Tufail has welcomed the Federal Budget 2026-27, saying it supports economic stability. However, he urged the government to introduce stronger measures to boost exports, resolve the energy crisis, and promote industrial growth.
According to a statement issued by UBG Central Spokesperson Gulzar Firoz, Tufail praised the government’s tax reforms but said the budget lacks effective policies to strengthen exports and improve the business environment.
Moreover, he welcomed the Rs71 billion allocation for the Apna Ghar Housing Scheme and the construction sector. He said the initiative would stimulate growth in the housing industry. He also appreciated the Rs88 billion allocation for export refinancing, along with higher funding for development projects and higher education.
At the same time, Tufail stressed that the government must introduce stronger incentives to encourage investment, expand industry, increase exports, reduce business costs, and accelerate technology adoption.
Commenting on the Rs18.7 trillion Federal Budget, he acknowledged the government’s efforts to stabilize the economy. However, he said Pakistan must now shift its focus toward sustainable economic and industrial development.
Furthermore, Tufail highlighted several positive economic indicators. He noted that GDP growth has reached 3.7 percent, the fiscal deficit has narrowed to 0.7 percent of GDP, the primary surplus has increased to 3.7 percent of GDP, and public debt servicing costs have declined by 33 percent.
He also described the expected increase in foreign exchange reserves to $18 billion by June 30 and the rise in per capita income to $1,901 as encouraging signs of fiscal discipline and economic stability.
Meanwhile, Tufail supported the government’s plan to bring retailers under a fixed tax regime. However, he stressed that effective implementation would be crucial. He warned that higher withholding taxes could create additional difficulties, especially since many retailers still remain outside the tax net.
In addition, he urged the government to introduce stronger reforms for the agriculture sector. He welcomed the abolition of the super tax on incomes up to Rs500 million and the reduction of the super tax rate from 10 percent to 8 percent for higher-income groups.
He also appreciated the lower withholding tax on overseas payments made through debit and credit cards, reduced property transaction taxes for filers, and the abolition of the Federal Excise Duty on international business-class travel.
Finally, Tufail expressed concern over the Rs10 billion allocation for the K-IV water supply project. He warned that the limited funding could delay completion of the project and urged the government to accelerate work to address Karachi’s growing water shortage.
