- Govt making right efforts in introducing trustworthy channels for the growth of economy
Interview with Mr Hamad Rasool Bhullar — an analyst
PAGE: Tell me something about yourself, please:
Hamad Rasool Bhullar: I am currently working with a large public sector organization. With respect to the financial sector, I have been involved in research and training for over 28 years and so far, and conducted over 300 trainings on different aspects of Finance, Business Ethics, Audit and Corporate Governance from basic concepts to professional applications in Projects Finance, Shariah Compliant risk management, investment management and Corporate Governance etc. in addition to the freelance consultancy and Financial Advisory in these fields. I have also remained a non-executive member on the Board of an Investment Bank during 2005 -08. My qualifications and experience over the last 32 years have mainly been a mix of Accountancy, Corporate Law, IT, Economics Finance, Islamic Finance & Takaful, Projects Finance, Audit & ethics, Trainings and Business Turnaround Advisory.
PAGE: How would you comment on Roshan Digital Accounts?
Hamad Rasool Bhullar: As a matter of fact, RDA is a great step towards financial growth. Here, it is up to the Pakistani banks to explore this opportunity for the development of Pakistan by approaching the non-resident Pakistanis who have great funds with them to attract these funds by offering and approaching the people. Benefits of any structure flow to the stakeholders if the plan gets success, which depends on the point where all the stakeholders agree and work on common agenda. Instead of spending more on advertisement in local media, they must produce certain case points in videos and share them with the possible depositors.
PAGE: What is your perspective about MERA GHAR housing loan scheme?
Hamad Rasool Bhullar: Perhaps the name of the scheme is “Roshan Apna Ghar”. It is the scheme of loan offered to certain non-resident Pakistanis living in Gulf and Far East regions, who fulfill certain specified conditions as laid down by the state Bank of Pakistan. As it has been connected with Roshan Digital Account, it does not contain any charges which make it even more attractive. The actual point is when will the fruits of such schemes start flowing to Pakistan and later start transforming into values for the common citizens of Pakistan.. .. .. !
PAGE: Could you tell us about e-banking landscape in Pakistan?
Hamad Rasool Bhullar: E-banking is the future, as I have been saying it for many years, that the business style and practices will change the way it was traditionally practiced. If we examine the business practices of banking about 30 years ago, there was no concept of Internet Banking, online transfer of funds, shared platforms for credit scores or even ATMs. We have already changed a lot. Now we have rapidly increasing trend of QR Codes for payment, finger-print identifications, Mobile Banking, Mobile Apps etc. all is being handled by E-Banking, we are seeing another system of RAAST BANKING P2P system of Payments introduced by the State Bank of Pakistan offering lower cost and enhanced security. Accordingly new trends and systems for financial controls are coming up to challenge the stereotype by requiring enhanced levels of learning and systems using trustworthy channels.
PAGE: Could you give your views on the auto loans by banks?
Hamad Rasool Bhullar: Consider it as “Auto Financing” instead as we are having two systems prevailing parallel, i.e., under Islamic Financing and under Conventional Financial system. Yes, under the conventional banking system the only business model is loans, while under Islamic Finance we can find multiple business models in the form of Ijarah, Diminishing Musha’rikah and many hybrid models catering the nature and tenor of financing. There is no doubt that these models have enhanced the accessibility of masses on this segment of banking and created value for the Auto Financing consumers.
PAGE: Kindly tell us about personal loans offered by the banking sector:
Hamad Rasool Bhullar: Personal loans are mostly a risky tool in banking in addition to being a costly proposition, usually adopted only as a last option by the consumers. Although its distribution is quite widespread mostly by the conventional banks and the people in very serious need become involved in it. As a matter of fact, the effective rate of interest in annualized terms becomes quite high which becomes cruel to the consumers even in case of microfinance its cost of operations is high enough.