INTERVIEW GHULAM MUSTAFA QAZI, VICE PRESIDENT ICMAP AND PARTNER QAZI & CO.
Oct 1 - 7, 2012
PAGE: TELL ME SOMETHING ABOUT YOURSELF AND YOUR COMPANY, PLEASE?
GHULAM MUSTAFA QAZI: I was born in 1971 in a religious family at district Abbottabad. Abbottabad is famous for its beauty, tourist attraction and education. I got my early education in Abbottabad and then did my S.S.C. from Islamabad. I graduated in Mathematics and Physics from Gordon College in 1992. By Profession, I am Cost and Management Accountant and a Fellow Member of the Institute of Cost and Management Accountants of Pakistan. I qualified in 1998 and was enrolled as Associate Member in 1998 and Fellow Member in 2007. I started my own consulting firm as a partner in 'Tariq Mustafa Ramzan& Co.' in 1998. Here I got opportunity to provide consulting services to a large number of clientele from Government, Private and Public Sector Organizations. Then I started my own firm in the name of 'Qazi& Co.' in Islamabad. My firm offers Management Accounting, Financial, IT, Tax, Corporate Laws, Audit, Business and Management Consulting.
PAGE: WHAT ARE YOUR VIEWS ON IMPACT OF EVER-INCREASING OIL & GAS PRICES ON INDUSTRY?
GHULAM MUSTAFA QAZI: Mobility is the primary requirement of transportation of goods locally and internationally. Even imports and exports have impacts on variation of oil prices. The continuous increase in oil and gas prices has adversely affected the cost of products and cost of doing business. Many industries are oil or gas dependent and rapid increase of prices has affected the competitiveness of our industry. A significant part of our industry has moved to other countries like Bangladesh, Sri Lanka, Malaysia, UAE, Europe and Canada etc.
Price stability ensures that the investors continue to plan their future confidently. Most of the long term plans fail due to the impact of increased prices of oil and gas and other commodities.
Our transport sector is fully dependent upon the oil and gas. The increasing prices have burdened the public with increased fares and transport costs.
Therefore, for a stabilized industry, Government should devise a strategy to stop increasing prices of these important items.
PAGE: YOUR VIEWS ON TAXATION SYSTEM IN PAKISTAN?
GHULAM MUSTAFA QAZI: Taxation is the most significant source of government earning. Governments plan their development and non-development spending based upon the tax collections.
Therefore the tax system of a country should be such that it gains the confidence of the taxpayers. This is not the case with the current taxation system of Pakistan. There are various Federal and Provincial taxes in Pakistan including Income Tax, Sales Tax, Federal Excise, Customs etc. The tax laws are complex and business people are often confused on the tax treatment of their various business activities. These laws should be made simple to understand for better compliance.
Tax to GDP ratio in Pakistan is very low. This is why the tax paying businesses are burdened. Government should expand the tax base with the following steps: 1. Bringing new sectors to tax base, 2. Levy of taxes to all, 3. Reduction in tax rates, 4. Reduction in number of taxes, 5. Making the filing system easy and user-friendly, 6. Further automation of tax system
Decreased interaction of taxpayers with the tax department officials to avoid corruption and facilitate taxpayers.
PAGE: COULD YOU TELL US ABOUT THE BENEFITS OF ERP TO CORPORATE SECTOR?
GHULAM MUSTAFA QAZI: ERP helps automation of business processes of corporate sector organizations. Such processes include accounting, budgeting, supply chain management, payroll & human resource management, accounts receivables and payables management, customers relationship management, manufacturing, financial statements and corporate reporting, financial analysis and so on. Thus ERP provides readily available information for management and other stakeholders, which helps them make informed and accurate decisions. You can say ERP helps corporate sector organizations to manage their business effectively and ensures continuous growth.
Various reports and financial statements, which earlier took days and months of the managers to process, can now be obtained with a click of button with ERP. Thus ERP has significantly reduced load of manual paperwork through quicker processing of information. You can also project your future based upon past performance and projection tools available in ERPs.
This has improved the quality and timeliness of service to clients and other stakeholders by way of prompt response, follow up and disposal of their queries. Handling of transactions in different currencies at different locations, projects and departments is very simple in an ERP. All the modules/ processes are integrated to provide companywide reporting. Almost all of the popular ERPs integrate with common applications like MS Office, Task Management Solutions and E-mailing applications. For example, you can e-mail a report to a customer right from your ERP in Microsoft Excel format.
These ERPs are highly secured against unauthorized changes and data loss by passwords, user controls, backup procedures etc.
If I summarize the benefits of ERP, they cover the following: 1. Improved alignment of strategies and operations, 2. You can run your organization in accordance with strategy and plans, accessing the right information in real time for early identification of concerns, 3. Pursue opportunities proactively, 4. Achieve corporate objectives by aligning workforce and organizational objectives, 5. Find the best people and leverage their talent in the right job at the right time, 6. Improved productivity and insight, 7. Leverage self-services and analytics across your organization, 8. Improve operational efficiency and productivity within and beyond your enterprise, 9. Reduced costs through increased flexibility, 10. Use of enterprise services architecture to improve process standardization, efficiency, and adaptability, 11. Extensionof transactions, information, and collaboration functions to a broad business community, 12. Reduced risk, 13. Solving complex business challenges today with ERP, 14. Personalized services through partner network of ERPs. Partners know your business and environment and offer customized solutions, 15. Improved financial management and corporate governance, 16. Gaining deep visibility into the organization with financial and management accounting functionality combined with business analytics, 17. Increased profitability, improved financial control, and management of risk, 18. Optimized IT spending, 19. Integration and optimization of business processes, 20. Elimination of high integration costs and the need to purchase different solutions for different corporate needs, 21. Improvement of cash flow results in reduction in costly borrowings, 22. Retaining top performers, 23. Retention of top performers through clearly defined career and development plans., 24. Linking employees' performance to compensation programs, 25. Immediate access to enterprise information, 26. Employees can quickly access the enterprise information required for their daily activities.
PAGE: HOW COULD COST & MANAGEMENT ACCOUNTANTS HELP THE ECONOMY OF PAKISTAN?
GHULAM MUSTAFA QAZI: Cost and Management Accountants are playing significant role in the economy of not only Pakistan but in various other countries. CMAs can help organizations in their accounting and financial management, policies and procedures, cost optimization, internal controls and risk analysis, tax and corporate affairs, financial reporting, strategy definition and implementation, performance management, communication with internal and external stakeholders, manufacturing planning and many other areas.
As a part of their qualification, they learn to handle financial and cost accounts, risk, audit, management. Thus Management Accountants are better qualified to help management in their timely and accurate business decisions.
Apart from the support to the industry, CMAs can also help Government in financial planning, policy making, budgeting, performance management, capacity building of HR, settle issues between Government and provinces.
Many management accountants have established businesses and are playing important roles in the economy. Management Accountants in practice provide advisory services to corporate sector in various areas.
PAGE: YOUR VIEWS ON PRACTICING MEMBERS OF ICMAP:
GHULAM MUSTAFA QAZI: Practicing members of ICMAP are providing important business consulting services to their clients. Some of the services they offer include:
1. Cost Audits, 2. Financial Audit, 3.Income Tax and Sales Tax Services, 4. Corporate Laws consulting, 5. Financial Analysis, 6. Cost Analysis, 7. Financial and ERP Systems implementation, 8. Corporate Strategy, 9. Corporate Trainings
I believe that practicing CMAs can help stabilize economy, revive sick industrial units, improve efficiency of businesses and support Government in budgeting & policy-making.