Karachi: United Business Group (UBG) President, Mr. Zubair Tufail, has voiced strong opposition against the government's economic strategies, particularly its compliance with stringent International Monetary Fund (IMF) conditions. Mr. Tufail argues that this approach risks mortgaging the national economy and could precipitate irreversible economic decline.

According to United Business Group, Mr. Tufail stressed the need for equitable treatment across all economic sectors to prevent worsening economic conditions. He expressed particular concern for the textile sector, which is a major employment provider, and criticized the government for neglecting its responsibilities towards this crucial industry. Mr. Tufail called on the Finance Minister to engage directly with affected business sectors by visiting the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) headquarters.

During a recent discussion involving key figures like former FPCCI Senior Vice President Mazhar Ali Nasir and other prominent businessmen, Mr. Tufail highlighted the severe economic impact following the announcement of the federal budget for fiscal year 2024-2025. He noted a sharp increase in inflation beginning July 1, with significant price rises across all goods, signaling tough times ahead for Pakistan’s economy.

Mr. Tufail further criticized the federal budget, which he believes has left no business sector satisfied due to an excessive tax burden, including cases of double taxation. This situation has led to widespread discontent among exporters and threats of strikes from the construction sector and petroleum dealers. Additionally, Mr. Tufail condemned the recent decision to end the "Final Tax Regime," which has been particularly unpopular among exporters.

The UBG President also called for a reversal of new fixed electricity charges and criticized the indiscriminate taxation on food items, which has led to record price increases. He noted that the latest hikes in General Sales Tax on essential IT hardware from 5% to 10% will substantially raise operational costs for IT companies, exacerbating challenges in a sector that has been a bright spot in Pakistan’s economy.

Mr. Tufail concluded by urging the government to reconsider the recent increase in petroleum product prices, citing its detrimental effects on industrial production and the broader cost of living for Pakistani households.