Karachi: The President of the United Business Group (UBG), Zubair Tufail, has called on both federal and provincial governments to integrate fiscal austerity into the national economic policy. His recommendations aim to counter the rising financial pressures, escalating debt, and expanding budget deficits that Pakistan is currently navigating. He asserted that without substantial reductions in government spending, the pursuit of long-term economic stability would remain challenging, as the existing development model heavily relies on borrowing.

According to United Business Group, Tufail highlighted that excessive spending on administrative costs, the protocol culture, inefficient subsidies, and loss-making state-owned enterprises is straining the national budget. He proposed that a thorough review of expenditures across ministries and public sector organizations be conducted to pinpoint and eliminate unnecessary spending. The savings should then be channeled towards critical sectors such as education, healthcare, infrastructure, export promotion, and energy improvements.

The UBG President also underscored the potential of the private sector in fostering economic growth, contingent on the creation of a business-friendly environment by the government. This includes providing affordable energy, simplifying the tax regime, and implementing investment-friendly policies. He noted that current high interest rates, costly electricity, and complex taxation are hindering business operations and reducing the competitiveness of industries and exporters. Tufail contended that maintaining fiscal discipline alongside comprehensive economic reforms would attract domestic and foreign investment and create new employment opportunities nationwide.

Tufail emphasized that fiscal discipline, transparency, and accountability are crucial for enduring economic stability. He urged the government to reduce its dependence on borrowing by broadening the tax base, enhancing exports, reforming state-owned enterprises, and significantly cutting non-development expenditures. He advocated for a coordinated strategy involving the government, business community, and other stakeholders to strengthen Pakistan's economy. Such collaborative efforts, he suggested, could lead to sustainable growth, increased self-reliance, and long-term prosperity.