President of the United Business Group (UBG) and former President of the FPCCI, Zubair Tufail, has described the Federal Budget 2026-27 as a guarantor of economic stability. While appreciating the government’s tax reform measures, he also expressed concerns over the lack of effective steps to accelerate exports, address flawed export-related policies, and resolve the energy crisis.
According to a statement issued by UBG Central Spokesperson Gulzar Firoz, President United Business Group Mr. Zubair Tufail said that the allocation of Rs71 billion for the “Apna Ghar Housing Scheme” and the construction sector is an excellent initiative that will stimulate growth in the housing industry. He also welcomed the allocation of Rs88 billion for export refinancing and increased funding for development projects and higher education. However, he emphasized that the government needs to introduce stronger measures to promote investment, industrial expansion, export growth, reduction in business costs, and the adoption of technology.
Welcoming the presentation of the Rs18.7 trillion Federal Budget 2026-27, Zubair Tufail praised the government’s efforts toward economic stabilization but stressed that the country must now move decisively toward sustainable economic and industrial development.
He noted that the GDP growth rate has improved to 3.7 percent, the fiscal deficit has been reduced to 0.7 percent of GDP, the primary surplus has reached 3.7 percent of GDP, and the cost of servicing public debt has declined by 33 percent.
He termed the expected increase in foreign exchange reserves to $18 billion by June 30 and the rise in per capita income to $1,901 as significant achievements reflecting economic stability and fiscal discipline.
Zubair Tufail stated that bringing retailers under a fixed tax regime would certainly generate revenue for the Federal Board of Revenue (FBR), but practical implementation remains essential. He pointed out that retailers have largely remained outside the tax net, and increasing withholding tax rates on them may create additional difficulties.
He further said that the government should have introduced more meaningful and effective measures for the improvement of the agricultural sector. He welcomed the abolition of 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 brackets. He also appreciated the reduction in withholding tax on overseas payments made through debit and credit cards, lower tax rates on property transactions for tax filers, and the abolition of Federal Excise Duty on international business-class travel.
The UBG President also noted that only Rs10 billion has been allocated for the K-IV water supply project. He warned that this could result in further delays and stressed that the project should be completed as soon as possible to overcome the water shortage faced by the residents of Karachi.
