Interview with Mr Aamir Ijaz Khan – member ICMA-Pakistan
[box type=”shadow” align=”” class=”” width=””]Profile:
Professional Qualifications:
- Fellow Cost & Management Accountant (FCMA) from Institute of Cost & Management Accountants of Pakistan
- SAP FICO Certified Consultant from Abacus Consulting, Lahore partnering with SAP Malaysia
- Certified Management Accountant (in progress) from Institute of Management Accountants, USA
Professional Experience:
- Since April 2012, working with Innovative (Pvt) Limited, only Gold Partner in Pakistan of APC-MGE (a Schneider group company) largest UPS manufacturer in the world and only Gold Label Service Partner of Diebold Nixdorf a global leader in ATMs; as Head of Quality Assurance (Client Services Div.).
- October 2010 to April 2012: Served Interwood Mobel (Pvt.) Limited, a leading furnishing concern with annual turnover +1 billion & listed among country’s fast growth companies, as Finance Manager & Secretary Funds.
- September 2009 to October 2010: Worked in World Bank Project namely “PIFRA — Project to Improve Financial Reporting & Auditing” under Auditor General of Pakistan as ‘Audit MIS Expert (Punjab)’. Project aimed at implementation of Audit Management Information System (AMIS) in AGP network in the province.
- March 2007 to September 2009: Worked with Sui Northern Gas Pipelines Limited (SNGPL) as Executive Financial Accountant.
- April 2004 to March 2007: Worked in Jamshoro Joint Venture Limited (JJVL), Pakistan’s largest LPG producer, as Manager Finance & Company Secretary.
Publications:
Three papers have been published in ‘Management Accountant’ on accounting standards, proposals for IT sector in the annual finance budget of the country.
Training & Public Speaking Experience:
- Served as Chairman Lahore Branch Council of ICMA Pakistan for three years and organized various training programs and workshops for the members.
- Conducted various workshops and trainings on Interpersonal skills, effective communications and negotiation skills as registered trainer with Trainers’ Guild.
- Registered as motivational speaker with Care Foundation for conducting different sessions with their registered students and faculty.
Volunteer Working Experience:
- Serving as Executive Member on ‘Quality Assurance Board’ of ICMA Pakistan since 2014
- Serving as Management Committee Member of the Pakistan Chapter of Mensa since 2002
- Served ICMA Lahore Toastmasters Club as Founder President (2014-15).
- Served Lahore Branch Council of ICMA Pakistan as Chairman for three years (2011-2013.)[/box]
Pakistan & Gulf Economist had an exclusive conversation with Mr Aamir Ijaz Khan regarding economy. The excerpts of the conversation are as follows:
Since independence, our meager economy has always been found itself in doldrums except at couple of exceptional patches when it’s been injected heavily with some unusual dosages of irregular inflows. Then, what has made us that unique and significant that only in last one year; we have been referred 37 times in 235 pages report “Global Trends: Paradox of Progress” published by the National Intelligence Council USA; word ‘Pakistan’ found 9 times in latest report on Readiness for the Future of Production by World Economic Forum; and 17 times in its another benchmark publication “The Global Human Capital Report“. On top of all, how can we forget PricewaterhouseCoopers’ famous research “The long view: how will the global economic order change by 2050?“, which predicts our splendid future that Pakistan’s economy will become 16th ranking economy of the world by year 2050.
By the grace of Almighty, we are a free nation, sixth largest country in the world in terms of population. More than 60% of the country’s population consists of below 25 years of age. Overseas Pakistanis are doing wonders in the world and sending about $20 billion remittances every year. We are the 46th largest economy of the world. In 1947, there was only one car for one thousand people, and now 52 vehicles are available for the same number of our countrymen. Pakistan is the first number in the world using pollution-free CNG-driven vehicles.
Despite all odds, we kept on limping towards the rays of hope; were those be the wars with the neighbor or the fall of our one part; was it our imposed indulgence in famous cold war or some peavey sort of separation movements but with strong hearts and firm believes we succeeded to land at that meritorious moment when no compromises were able to take charge on our rousing sentiments and we became the first Islamic country with nuclear deterrence. After this nuclear explosion, our neighbor somehow managed to settle its economy but our economy got squeezed.
Some hefty sanctions were imposed on our development loans or the aid by global financial institutions. Foreign currency reserves got depleted sharply and even no new foreign investment could be made in Pakistan as a result of which the economy of the country remained stagnant. Gradually, the world institutions began to pull back the imposed sanctions, the government also took some remedial measures to improve the situation, which included to curtail foreign exchange payments and certain negotiations on nuclear program.
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Our financial economic indicators were not as rosy as they should be. Initially our growth rate was very low but later it took off slightly. Due to various economic sanctions, reduction in imports, uncertain country conditions and low demand for our exports badly affected the industrial growth in that year. Agricultural sector production also faced low growth rate because of the bad weather conditions. Consumer savings, foreign direct investment gross national production; all showed declining trends except the service sector which grew a bit more pace than last year.
Along with other international organizations, Pakistan has also signed with WTO, which has consequently changed the laws of Pakistan. These changes include but not restricted to trade policy, customs valuations and other levies which directly affected the domestic trade, industrial, financial and services sectors. Actually, the purpose of these changes was to promote the free trade for which Pakistan was not ready yet. All those goods and commodities could be produced in the country, for which we were being forced to import from the other developed countries and that too at their terms. It is fact that some countries have kept themselves aloof from WTO. The sole object of this decision is to protect their local industry. This protection refers to every country in one or other way but we are still perplexed that which way to opt.
Pakistan’s industrial growth is highly dependent on its political, economic and social environment, which also remains under the globalization policy. It is a known fact that some big developed countries’ globalizations policies are not integrated with the other countries’ political preferences which certainly creates lot of troubles for the global peace. Likewise, foreign investment should also correlate with the local investment. If there are no incentives for the local investors contrary to their foreign counter parts who enjoy complete freedom of investment opportunities then this deprivation would soon create humid environment for investments.
There are many types of tax levies. Approximately 70 percent of government’s revenue is being collected through direct taxes. The irrational tax brackets to levy taxes, even in case of no earnings, is entirely against the basic cannons of taxation and makes the investors dejected. Applied rates of taxes are also higher than the other countries which should also be reviewed. It is also becoming a major cause of the higher production outlays which hinders our industry to compete with the other countries. Complexity and duplication of taxes is another grave concern for our investors.
Nationalized institutions are also being privatized nowadays but as a matter of fact we should always keep in mind those viable options which will certainly give benefit to its local investors because the foreign ones might own these entities at higher prices but they cannot stay here after sustaining even minor losses. Privatization through stock exchange should always be encouraged because it provides the benefit to countrymen. Same is the case with the foreign financial institutes which are here only to earn the profits regardless of participating in any local sector developing activity.
According to the Pakistan Business Council (PBC), Pakistanis do have their wealth abroad amounting to around $150 billion. Their representatives claim that they may bring back an amount of $20 billion if some lucrative incentives are offered.
Now the policy makers should work on these lines to chalk out some framework wherein it would be win-win situation for all the stakeholders.
International Monetary Fund (IMF) in its latest release of World Economic Outlook lauded that Pakistan is expected to pick up in 2018 and 2019, but it will remain curbed. Pakistan has successfully achieved a growth rate of 5.3% during fiscal year 2016-17, the highest in a decade. Besides this, another sigh of relief is to witness an upward growth trends in first six months of the ongoing fiscal year.
Now the target set for this fiscal is 6% which would be hopefully achieved with same pace of activities. What we need is all about the economic efficiency, inclusiveness of growth and prompt response to any emergent scenario.
It is indeed heartening for us where same report described that about one fifth of the emerging markets and developing countries saw their per capita incomes decline in 2017. Now it is time for our collective action towards the prosperity and peace for our homeland.