Karachi: President of the United Business Group (UBG), Zubair Tufail, has characterized the Federal Budget for the fiscal year 2026-27 as a key instrument for economic stability. He acknowledged the government's tax reforms but voiced concerns about insufficient measures to boost exports, address policy issues, and resolve the energy crisis.

According to United Business Group Central Spokesperson Gulzar Firoz, Tufail highlighted the Rs71 billion allocation for the "Apna Ghar Housing Scheme" and the construction sector as a positive step for stimulating industry growth. He also noted the Rs88 billion earmarked for export refinancing and increased funding for development projects and higher education. However, he stressed the need for robust measures to promote investment, industrial growth, and export expansion.

In welcoming the Rs18.7 trillion Federal Budget, Tufail commended the government's stabilization efforts but emphasized the necessity of pivoting toward sustainable economic development. He cited improvements in the GDP growth rate to 3.7 percent, a fiscal deficit reduction to 0.7 percent of GDP, a primary surplus of 3.7 percent of GDP, and a 33 percent decline in public debt servicing costs as indicators of stability.

He described the anticipated rise in foreign exchange reserves to $18 billion and the increase in per capita income to $1,901 as significant achievements. Tufail remarked that shifting retailers to a fixed tax regime could boost Federal Board of Revenue collections, though effective implementation is crucial.

Tufail also called for more impactful measures for the agricultural sector. He welcomed the removal of the super tax on incomes up to Rs500 million and the reduction of the super tax rate for higher-income brackets. Additionally, he praised lower withholding tax rates on overseas payments, reduced property transaction taxes for filers, and the removal of Federal Excise Duty on international business-class travel.

The UBG President expressed concern over the Rs10 billion allocated for the K-IV water supply project, warning that it might lead to further delays and urging prompt completion to address Karachi's water shortage.