INTERVIEW WITH MR MUHAMMAD AZAM KHAN, CEO & NOMINEE DIRECTOR SUNRISE CAPITAL (PVT) LTD.
July 30 - Aug 5, 2012
Muhammad Azam Khan is the Chief Executive Officer and Nominee Director of Sunrise Capital (Pvt) Ltd. He is a recognized leader whose vision and operational expertise has proven invaluable to the organization. Being a CEO, Azams's core responsibilities include the leadership and management of SRC for the achievement of administrative, operational, research and sales & marketing objectives, anticipating future business dimensions and to substantiate as a value added brokerage house in Capital Market. He is also a Director of Scube Solutions Pakistan (Software House) and Director Sunrise Technologies (A Full Service Hardware & Software Technologies). Azam undoubtedly is a man of commitment whose consequential approach will take SUNRISE Group to its apex level and it will be ranking amongst the top Group of the country very soon.
MR. AZAM TALKED TO PAKISTAN & GULF ECONOMIST ABOUT CONSUMER FINANCING AND ITS IMPACT ON CAPITAL MARKET.
PAGE: Tell me something about yourself and your company, please?
Muhammad Azam Khan: My company Sunrise Capital Private Limited is a corporate member of Karachi Stock Exchange (G) Ltd, and also active member of Karachi Chamber of Commerce & Industry, established and started operations as an equity brokerage house on August 05, 2009, with a wide vision to serve financial sector. Sunrise Capital is licensed and regulated by the Security & Exchange Commission of Pakistan (SECP) under section 32 of the companies' ordinance 1984. It has corporate universal identification no, Registration no with Member Code.
Sunrise Capital is primarily serves corporate, financial institutions, private equity, mutual funds and investment advisors to give new directions to their investment returns. Services of SRC include equity brokerage, distribution of funds, in-house research, analysis and portfolio management. The aim is to build relationships and manage existing books of business with their valued clients. SRC is playing a key role in capital market, delivering timely market updates to its Investors and its employees are the best human resource from the Capital Market and Financial Industry in Pakistan. I am, as you know well, working as the Chief Executive Officer and Nominee Director of Sunrise Capital (Pvt) Ltd. I have done my Masters in Business Administration from Karachi University and have a far reaching experience of working on key positions during my Fifteen years of professional life. At initial stage, I headed the marketing Department at Mashreq Bank, Dubai. I improvised and established marketing philosophy, techniques and provided impetus to the growth with the help of my academic back ground. I enjoyed rendering and contributing my expertise with Atlas Capital Markets (Pvt) Ltd (An Atlas Group Company) efficiently with inordinate dedication, where not only anticipated various ups and downs and financial crises of capital market in 2005 but also suggested successful and esoteric way outs, which become the root for Atlas to maintain its independent existence.
I also worked on Key position at Standard Capital Securities (Pvt) Ltd, discharging my responsibilities as Chief Operating Officer. By the Grace of God I proved myself as an eminent employee of the company with unbeatable leadership qualities, multifaceted management skills, extraordinary experience of working for Financial and Capital Organizations which fostered the reputation of SCS in the socio-economic harmony which has grown out of the market, extended business limitations and recorded as one of the thriving company in this time. I strongly believe in interaction with traders, sales team and also consider that we closely manage the liquidity, capital risks, profile and cost of trading of our valuable investors. I am much grateful for been honored by print and electronic media, where I prominently appeared and articulately exchanged my opinions about macro economic and financial market issues in Pakistan and region.
PAGE: WHAT POSITIVE OR NEGATIVE IMPACT HAS CONSUMER FINANCING LEFT ON CAPITAL MARKET?
MUHAMMAD AZAM KHAN: In my opinion there should be no direct impact of Consumer Financing on Capital Market but generally as we have witnessed in our society that when one avails Consumer Financing and is not able to pay off on time, savings get affected. When savings get affected, capital market gets negative impact.
PAGE: CONSUMER FINANCING FOR CREDIT CARDS, CAR PURCHASING AND HOUSE BUILDING HAS DECLINED HOWEVER, IMPROVEMENT HAS BEEN WITNESSED IN PERSONAL LOANS. WHAT COULD BE THE REASON?
MUHAMMAD AZAM KHAN: The only answer is inflation! You can see that cost of living is increasing day by day. It has become harder and harder to make both ends meet as petrol and utility prices are escalating, school fees , kitchen expenditures and everything seems to be out of reach. In this condition, how can one manage to pay off the rentals or credit card amount on time. After large number of default cases, banks also became very choosy and they are following the risk management strictly. The improvement in personal loans is also a negative sign as these loans are not borrowed for starting a new business or developing a small business but used to get rid off the pending defaults or for using and maintaining living standards which means this is also not good for economy or industry. It is a vicious circle. A person gets personal loan to clear his old defaults and has another burden on his own economy.
PAGE: DO YOU THINK CONSUMER FINANCING IS ON THE DECLINE BECAUSE OF HIGHER RATE OF DEFAULT?
MUHAMMAD AZAM KHAN: The real problem of Consumer Financing decline is the intensifying rate of unemployment in the country. In the economy like that of ours, the situation is always very unpredictable. The easiest way to have a good living is to get accessories on rental or by consumer financing loans while on job. If God forbid, one loses job, how could one pay off? Now-a-days people can't afford credit cards bills. If someone has 3 cards, he pays 2 cards bills and one will remain unpaid. Reason is same, escalating Inflation. Four to five years back, there was always a yearly 5% to 10 % increase in salaries, which was helpful in war against inflation but now there is no real increase in the salaries but inflation and cost of living are rising day by day.
PAGE: IT IS PERCEIVED THAT BECAUSE OF CONSUMER FINANCING, CONSUMERS' STANDARD OF LIVING IMPROVES BUT PUBLIC SAVINGS GET SLASHED DOWN SIGNIFICANTLY. YOUR COMMENTS PLEASE:
MUHAMMAD AZAM KHAN: Yes you can say that, but in my opinion savings are there. Those who are much active in saving, do not or rarely go for consumer financing. In fact, loan or consumer financing is not a bad trend but we have to understand the system. One should check his ability of paying off loans clearly not for one or two months rather he should have the repayment schedule for three or five years in which he has to pay back the amount. Banks must pay attention in that area.
PAGE: HOW WOULD YOU COMMENT ON THE STATE BANK OF PAKISTAN'S RULES FOR CONSUMER FINANCING?
MUHAMMAD AZAM KHAN: Bank firstly should facilitate the industry and business community so the wheel of economy moves faster and it will also impact the common man's life as more employment will be generated. But there are a lot of restrictions for business community, on the other hand individual or consumer finance is available in very easy way. No one is much concerned or educated about the risks and the repayment schedules are mostly not followed. The result is hundreds and hundreds of defaults. I must say again that rules and measures for consumer financing should be more firm because each default case affects the whole family.
Lastly, I would like to request State Bank of Pakistan to revise the policies for financial institutions and also facilitate the business community to attract maximum investment and generate revenue for the economy of Pakistan.