- Charity, CSR, and micro-finance banks together empower communities and reduce poverty sustainably in Pakistan
Interview with Mr Zia ul Mustafa Awan, CMA (Pak), CMA (USA), CMP (USA) — President, House of Professionals and Director Global Markets, ICMP USA
PAGE: Tell me something about yourself, please:
Zia ul Mustafa Awan: I am a management professional and corporate leader with over 25 years of experience across diverse industries, with a strong focus on organizational development, strategy, operations, project management, financial stewardship, risk management, and corporate governance. My professional journey has allowed me to work extensively at both national and international levels, contributing to institutional strengthening and leadership development.
Over the years, I have had the opportunity to serve in senior leadership roles within corporate and regulatory bodies. I have served multiple terms as President of ICMA Pakistan, as President of the South Asian Federation of Accountants (SAFA), and as a Member of the PAIB Advisory Group of the International Federation of Accountants (IFAC). My corporate experience includes C-level positions at organizations such as Descon Engineering Limited, Pakistan Expo Centres, and Rustam Group of Industries. In addition to my executive roles, I have also had the privilege of serving as a Director on the boards of key national institutions, including Zarai Taraqiati Bank Limited (ZTBL), the Ignite National Technology Fund, and the Pakistan Institute of Corporate Governance (PICG).
Currently, I serve as President of the House of Professionals, a management consulting and professional training organization, and as Director, Global Markets at the Institute of Chartered Management Professionals (ICMP) USA. In these roles, I remain actively engaged in leadership development, professional certification, and global outreach initiatives. Alongside my executive responsibilities, I continue to work as a corporate trainer, public speaker, and writer, with a strong commitment to ethical leadership, governance, and sustainable organizational growth.
PAGE: What must the incumbent government do to alleviate poverty in Pakistan?
Zia ul Mustafa Awan: Poverty alleviation in Pakistan demands a comprehensive, long-term, and systems-based approach, rather than reliance on short-term relief measures. While social protection programs play an important role in providing immediate support, sustainable poverty reduction can only be achieved by strengthening economic foundations and expanding productive opportunities. First, the government must prioritize human capital development. This includes improving the quality of education, expanding technical and vocational training, and aligning skills development with the needs of domestic and international labor markets. When individuals are equipped with relevant skills, they are better positioned to secure decent employment and move out of poverty permanently. Second, job creation through private sector growth should be a central policy objective. The government must focus on improving the ease of doing business by ensuring regulatory simplicity, policy consistency, and fair taxation. Small and medium enterprises, which have the greatest potential to generate employment, should be supported through access to finance, technology, and markets. Public-private partnerships can further accelerate growth in infrastructure, housing, and social services. Third, good governance and effective implementation are essential. Poverty reduction initiatives often fail due to weak targeting, inefficiencies, and lack of transparency. Leveraging technology for data-driven targeting, monitoring, and evaluation can significantly improve outcomes and ensure public resources reach those most in need. Lastly, poverty alleviation must be anchored in a holistic development framework encompassing healthcare, nutrition, population management, and women’s economic participation. Without strengthening these foundational pillars, poverty will persist across generations. In crux, the government must transition from short-term welfare to inclusive and productivity-led growth, enabling citizens to become active participants in the economy rather than passive recipients of support.
PAGE: What is your perspective about the charity work in Pakistan?
Zia ul Mustafa Awan: Charity in Pakistan is deeply embedded in our social and religious fabric and reflects the compassion and generosity of our people. Whether through individual giving, community initiatives, or organized welfare institutions, charitable work plays a crucial role in supporting the poor, especially during emergencies such as natural disasters, medical crises, and economic shocks. For many vulnerable families, charity is often the first and sometimes the only form of support available. That said, charity, by its very nature, is primarily relief-oriented. It helps people survive difficult moments but does not always enable them to escape poverty permanently. In Pakistan, a large portion of charitable giving is spent on food distribution, cash handouts, or one-time assistance. While these efforts are noble and necessary, they often address the immediate need rather than the underlying causes of poverty, such as lack of education, skills, employment, and access to opportunities. From a practical standpoint, charity can become far more impactful if it shifts toward empowerment-based initiatives. Supporting education, vocational training, healthcare, and small livelihoods can transform beneficiaries into self-reliant individuals. When people are enabled to earn with dignity, the need for recurring charity gradually declines. Transparency and trust also matter greatly. Donors want confidence that their contributions are being used responsibly and making a real difference. Strong governance, clear reporting, and measurable outcomes can strengthen the credibility of charitable organizations. In essence, charity in Pakistan is a powerful force for good. To achieve lasting impact, it should complement development efforts by focusing not only on helping people today, but also on enabling them to build a better tomorrow.
PAGE: Do you think the Corporate Social Responsibility (CSR) by the corporate sector is rather vital to address the scourge of poverty in Pakistan?
Zia ul Mustafa Awan: Yes, Corporate Social Responsibility (CSR) is not only important but increasingly vital in addressing poverty in Pakistan, particularly in a resource-constrained environment where the state alone cannot meet all social and economic needs. The corporate sector possesses financial strength, managerial capability, innovation, and execution capacity that can significantly complement public sector efforts.
However, CSR should not be viewed merely as philanthropy or a compliance exercise. Sporadic donations and publicity-driven activities, while helpful, have limited long-term impact. For CSR to be truly effective in reducing poverty, it must be strategic, sustained, and aligned with national development priorities. Corporates should invest in areas where they can create measurable social value, such as skills development, employability, health, education, financial inclusion, and support for small and medium enterprises within their value chains. One of the greatest strengths of the corporate sector is its ability to introduce efficiency, accountability, and performance measurement. When these principles are applied to CSR initiatives, the outcomes tend to be more sustainable and scalable. Public-private partnerships, industry-led training programs, and community development projects linked to local employment are examples where CSR can move beyond charity and create lasting economic impact. Moreover, responsible business practices themselves, fair wages, safe working conditions, diversity and inclusion, ethical sourcing, and environmental responsibility are a powerful form of CSR that directly contributes to poverty reduction. In short, we can say, CSR is a critical pillar in Pakistan’s poverty alleviation ecosystem. When embedded into core business strategy rather than treated as an add-on, it can play a transformative role in promoting inclusive and sustainable development.
PAGE: How effective are micro-finance banks in terms of inclusive economic growth in Pakistan?
Zia ul Mustafa Awan: Micro-finance banks have played an important and constructive role in promoting financial inclusion in Pakistan, particularly by extending credit to segments traditionally excluded from the formal banking system. By providing small loans, savings products, and basic financial services to low-income households, women, and micro-entrepreneurs, micro-finance institutions have helped integrate marginalized populations into the economic mainstream. That said, their effectiveness in driving inclusive economic growth has been mixed. On the positive side, access to micro-credit has enabled many individuals to start or sustain small businesses, smooth household consumption, and manage financial shocks. Women-focused lending, in particular, has contributed to greater economic participation and social empowerment in certain communities.
However, challenges remain. A significant portion of micro-finance lending is consumption-oriented rather than productivity-oriented, limiting its long-term impact on income generation. High effective interest rates, driven by operational costs and risk factors, often place pressure on borrowers and can trap them in cycles of debt if loans are not accompanied by business support and financial literacy. For micro-finance to contribute more meaningfully to inclusive growth, it must evolve beyond credit provision. There is a strong need to link financing with skills training, entrepreneurship support, market access, and digital platforms. Better targeting, product diversification, and outcome-based performance measurement can enhance impact. My conclusion that micro-finance banks are a valuable tool for inclusion, but they are not a standalone solution. Their real potential lies in being integrated into a broader development framework that emphasizes enterprise growth, employment creation, and sustainable livelihoods rather than short-term financial access alone.