Govt has taken best steps for economic growth, need to increase industrial activities
Interview with Mr Zia ul Mustafa Awan –President, ICMA Pakistan
PAGE: Kindly tell me something about yourself and your career, please:
Zia ul Mustafa Awan: Presently; I am serving as Chief Financial Officer & Business Administrator of Pakistan Expo Centre Private Limited, a corporate entity owned by the Government of Pakistan with the mandate to develop, operate and promote Expo Centers in major cities of Pakistan. I have been performing my duties since the inception of the company i.e. 2005 when the project of developing Expo Centre Lahore was just an idea. As a leading team member of the Pakistan Expo Centres, I played a vital role in developing the projects feasibilities; projects financing, projects execution, organizational management and launch of successful business operations of Expo Centres on self-sustainable basis. In recognition of my efforts, I also received an award from the Prime Minister of Pakistan.
In February 2018, I was elected again to assume the responsibility of President of Institute of Cost and Management Accountants of Pakistan (ICMA Pakistan) for the period of 2018-2020.
During 2012-14; I was elected as President of ICMA Pakistan and made the history of becoming the youngest President of the Institute, since its inception in 1951. I attained this position at the age of 37 years. As President and Chief Executive of the Institute, I took various initiatives and introduced reforms with the support of team members.
During the period of 2009-11, I had the responsibilities of Secretary of the Institute and Chairman publication Committee. I have been elected four times as Member National Council of ICMA Pakistan for three years terms i.e. 2009-11, 2012-14, 2015-2017 and 2018-2020.
I am also serving as a Board Member of South Asian Federation of Accountants (SAFA) since February 2018 and also have the responsibility of Vice President of SAFA since January 2019. Previously, I served on this Forum from Jan 2012 to Jan 2015 for the period of 3 years. According to SAFA Constitution, I will become the President of SAFA from January 2020.
I am also serving as Member of Policy Board of Auditor General of Pakistan (AGP) since February 2018.
In July 2019; Government of Pakistan appointed me as Member Board of Directors of the Ignite National Technology Fund.
I have travel experience of over 15 countries. I am well known for my contributions for the promotion of Accounting Profession around the globe and it is expected that my nomination on CAPA Board will be beneficial for all stakeholders.
PAGE: What is your take on the financial services in Pakistan?
Zia ul Mustafa Awan: In Pakistan, the financial market can be broadly categorized into Money Market and the Capital Market. The Money Market provides short term funds whereas the Capital Market provides long term funds to businesses and industries in the country. The financial market is also classified into Primary and Secondary markets.
The financial services sector in Pakistan is still under its rudimentary stages and it would need a lot more effort from the regulators in shape of policy measures that could bring the Pakistani financial markets in line and at par with the developed countries.
If we just look at the performance of our financial services industry we find that the Banking sector, which is the backbone of the financial sector, has performed well marked by steady growth in financing and profitability.
It is good to know that the Securities and Exchange Commission of Pakistan (SECP) has recently issued Regulatory Sandbox Guidelines 2019 to promote innovation in financial sector and encourage startups. I think this would definitely help improve financial services products in the country.
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PAGE: What benefit the industry has got from the financial services offered in Pakistan?
Zia ul Mustafa Awan: The industries in Pakistan are greatly benefiting much from the financial services offered by the banks, NBFIs, DFI, insurance companies, Leasing, Modarba and Mutual Funds companies. In fact, during the last one decade, there have been phenomenal growth in all these sectors of financial markets, especially in offering digitalized products and services which have not only improved business operations and services but also resulted in growth in overall business-related transactions in the country. The Islamic micro-finance industry has specifically made advancement and is being utilized not only by the business and industry but also by the philanthropist organizations. The improved regulatory regime of SBP and SECP has also played their part as it attracts investors into the financial markets. I think that in future more and more businesses would harness digital financial services to transform how they do business.
PAGE: What are your views on the financial services being offered globally?
Zia ul Mustafa Awan: The financial services being offered globally is improving with every passing day, marked by technological advancements in financial products and services. Non-cash payments are growing rapidly in many parts of the world.
A major development in the international financial services market is that the China is opening up its financial services industry and from January 1, 2020, overseas financial institutions will be permitted to establish wholly foreign-owned commercial banks, insurance companies and securities brokerages. The need for foreign lenders to gain prior approval to conduct local yuan business will also be removed. China is a big market and I think this initiative would change the global financial services landscape. Also, another global development is the emerging of a whole new market in shape of Fintechs.
PAGE: What is your opinion about the economy of Pakistan at present?
Zia ul Mustafa Awan: Well, the Pakistan economy seems to be heading in right direction with policies and initiatives taken by the present Government. Pakistan’s Current Account turned into surplus in October 2019 for the first time in four years. Moody has also upgraded Pakistan’ economic outlook from negative to stable. All these are good omen for the country.
I think that the Government should now take some concrete measures to increase the industrial activity in the country, including incentivizing the establishment of small and medium sized businesses in the formal sector which would not only help boost the tax revenues but also spur economic growth.