- CAP helps to promote healthy consumerism in the country
Interview with Mr. Kaukab Iqbal — Founding Chairman, Consumers Association of Pakistan
PAGE: Tell me something about yourself, please:
Kaukab Iqbal: I feel much delighted to introduce myself as well as to present the vision and mission of the Consumers Association of Pakistan as one of the largest NGOs working for providing awareness about consumer rights and consumer protection. In fact, the Consumers Association of Pakistan was formed under my Chairmanship on 13th September 2003. Since then working for providing awareness about Consumer Rights and Consumer Protection.
CAP is a non-government, non-profit organization formed by volunteer individuals who believe in developing sustainable consumption in Pakistan. Moreover, by protecting, enhancing and articulating the best interest of Pakistani Consumers, CAP is also helpful to create fair and ethical trade practices.
CAP priorities are consumers’ rights & responsibilities which are:
- The right to satisfy basic needs
- The right to safety
- The right to be informed
- The right to choose
- The right to be heard
- To curb abusive business practices
- The right to redress grievances
- The right to a healthy environment
- To encourage a high level of ethical practices in the market
- To develop fair effective market economics
- To facilitate the development of consumers groups at the grass root level
- To ensure follow-up of UN guidelines
- To attain International co-operation
CAP is accredited as well as a working partner to the following organizations:
- UNIDO (United Nations Industrial Development Organization)
- US AID (United States Agency for International Development)
- PNAC (Pakistan National Accreditation Council)
- GWP (Global Water Partnership)
- EC (European Commission)
- Association for Airline Passengers Rights (USA) (AAPR)
- Pakistan Standard & Quality Control Authority (PSQCA)
- Competition Commission of Pakistan (CCP)
- WHO (World Health Organization)
- PTA (Pakistan Telecom Authority)
- PEMRA (Pakistan Electronic Media Regulatory Authority)
- CAA (Civil Aviation Authority)
In order to promote awareness among consumers, the Consumers Association of Pakistan every year organizes:
- Food Safety Conference
- Road Safety Conference
- Information Technology (IT) Conference
- Tele Com Conference
- Air Passengers Safety Conference
- Financial Conference
To appreciate all the stakeholders who perform their best for consumers every year, the Consumers Choice Awards distribution ceremony is organized. This prestigious event work as a bridge among consumers, manufacturers and service providers. This award has now become a tool for promoting healthy consumerism in Pakistan and a symbol of reward for those who work the whole year for promoting the best goods and services for consumers.
PAGE: In Pakistan’s banking sector, the evolution of the Consumer Financing Portfolio is a more recent phenomenon, as banks have traditionally focused on lending to the corporate sector and public sector entities. What is your take on it?
Kaukab Iqbal: Being Chairman of the Consumers Association of Pakistan, the voice of the consumers, I deeply appreciate the role of consumer financing through the banking sector in Pakistan as it is a blessing for middle-class consumers who have to meet their needs within limited budgets. In other words, consumers financing is helping in providing access to purchasing power to middle-class consumers to enable them to raise their standard of living by purchasing various consumption goods which were treated as luxuries and beyond the purchasing power of common consumers, credit cards, debit cards, students loans, auto loans, loans for housing, loans for consumers durable goods are very common products which are being enjoyed and used by consumers for ready use.
PAGE: Which factors are responsible for the widespread popularity of consumer finance in Pakistan?
Kaukab Iqbal: In fact due to the awareness of consumers about consumers’ products now consumer behavior plays a vital role in the widespread popularity of consumer finance. The following factors are influencing consumer behavior on which whole consumers financing depends:
- Psychological
- Motivation
- Perception
- Learning
- Attitudes
- Beliefs
- Social factors
- Cultural factors
- Personal factors
- Resources
PAGE: Your perception of various categories of consumer finance.
Kaukab Iqbal: No doubt, consumer financing has been helpful for consumers over the years and many positive developments have also been associated with consumer finance but on the other hand its role in promoting consumerism in Pakistan is generating an alarming situation for the economy including a rise in Inflation rate as well as the rising interest rate and a significant increase in nonperforming loan, resulting slowdown in economic activities.
PAGE: Do you presume access to and growth in consumer finance carries both social and economic significance for society?
Kaukab Iqbal: Nobody can deny the important role of consumer financing and its socio-economic significance as well as a positive impact on society as it relates to personal financial planning of consumers or his/her family’s current financial position to meet their needs and executing a plan to fulfill those needs within their budgets. It depends mainly on one’s earnings, living requirements and individual desires. Credits cards, debit cards, life and home insurance to protect against risk, mortgages, home loans, student loans, auto loans, retirement plans and personal loans are the common instruments used in consumer financing to facilitate the consumers.
The financial liberalization process over the last two decades has been helpful for people to raise their living standards. This positive trend has led the manufacturing sector to expand its capacity achieving economies of scale or increasing the size of the economy besides a lot of other socio-economic developments experienced through consumer financing.