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 is your perspective about the investment-to-GDP ratio in Pakistan vis-à-vis the neighbouring countries?
Zia Ul Mustafa Awan: The investment-to-GDP ratio is a key indicator of an economy’s capacity to achieve sustainable long-term growth. Pakistan’s investment-to-GDP ratio has remained relatively modest, averaging around 13–15% of GDP in recent years, whereas several neighbouring economies have maintained significantly higher levels. For instance, India has recorded investment levels of approximately 30–33% of GDP, Bangladesh around 31–33%, Vietnam approximately 28–30%, while China has consistently maintained one of the world’s highest investment rates, exceeding 40% of GDP. These higher investment levels have contributed substantially to industrial expansion, export growth, infrastructure development, and employment generation.
From my perspective, Pakistan should view this gap not as a weakness but as a significant opportunity for future growth. A relatively low investment base also means there is considerable room to accelerate economic expansion through targeted reforms and investor-friendly policies. Encouragingly, Pakistan has undertaken several structural reforms aimed at improving macroeconomic stability, strengthening fiscal management, digitizing public services, and facilitating business activities. These initiatives are gradually enhancing investor confidence.
Pakistan possesses several inherent strengths, including a population of over 250 million, with nearly 65% below the age of 30, a strategic location connecting South Asia, Central Asia, China, and the Middle East, abundant agricultural resources, an expanding IT sector, and considerable potential in mining, renewable energy, logistics, tourism, and manufacturing. Going forward, Pakistan should strive to increase its investment-to-GDP ratio to at least 20–25% over the medium term, as higher investment is closely associated with stronger GDP growth, increased exports, higher productivity, and improved living standards. Achieving this objective will require policy consistency, regulatory certainty, public-private partnerships, improved infrastructure, competitive taxation, and efficient dispute resolution mechanisms. With sustained reforms and a stable investment climate, Pakistan has every reason to narrow the gap with its regional peers and unlock its significant economic potential.
PAGE: What is your standpoint about investment in mutual funds, banking, etc.?
Zia Ul Mustafa Awan: Investment in regulated financial instruments such as mutual funds, banking products, government securities, and capital market instruments is essential for promoting financial inclusion, mobilizing domestic savings, and supporting sustainable economic growth. In my view, these investment avenues not only help individuals preserve and grow their wealth but also channel savings into productive sectors of the economy, thereby contributing to national development.
Pakistan’s financial sector has shown encouraging progress over the years. The banking sector, with assets exceeding Rs. 50 trillion, continues to serve as the backbone of the economy by facilitating savings, financing businesses, supporting trade, and maintaining financial stability. Likewise, the mutual fund industry has witnessed remarkable growth, with Assets Under Management (AUM) exceeding Rs. 4 trillion, reflecting increasing public confidence in professionally managed investment products. Furthermore, Pakistan’s non-bank financial sector has expanded to approximately Rs. 6.8 trillion, with mutual funds accounting for nearly two-thirds of the sector’s total assets. These trends indicate a gradual strengthening of the country’s investment culture. From an investor’s perspective, mutual funds provide diversification, professional fund management, liquidity, and accessibility, making them an attractive option for both new and experienced investors. Similarly, banking products offer security, convenience, and a wide range of investment and savings solutions suitable for different financial objectives and risk profiles. Going forward, Pakistan should continue promoting financial literacy, strengthening investor protection, encouraging digital financial services, and expanding access to regulated investment products. A well-diversified investment portfolio, aligned with an individual’s financial goals and risk appetite, remains the most prudent approach. With continued economic reforms, policy consistency, and stronger investor confidence, Pakistan’s financial sector has significant potential to attract greater domestic savings, deepen capital markets, and contribute meaningfully to long-term economic prosperity.
PAGE: What must be done for hefty investment in the manufacturing sector?
Zia Ul Mustafa Awan: Manufacturing is the engine of sustainable economic growth, employment generation, and export expansion. In Pakistan, the Large-Scale Manufacturing (LSM) sector contributes around 8–9% of GDP, while the overall manufacturing sector accounts for approximately 12–13% of GDP. To accelerate economic growth, Pakistan should aim to increase manufacturing’s share of GDP to 18–20% over the next decade. To attract substantial investment, the foremost requirement is policy consistency and long-term investor confidence. Investors seek predictable tax policies, stable energy tariffs, efficient regulations, and protection of investments. Reducing the cost of doing business through affordable financing, reliable electricity and gas supply, modern industrial infrastructure, and simplified regulatory procedures is equally important.
Special emphasis should be placed on Special Economic Zones (SEZs), export-oriented industries, value-added agriculture, engineering, pharmaceuticals, information technology, and renewable energy-based manufacturing. At the same time, Pakistan should encourage technology transfer, automation, research and development, and workforce skill enhancement to improve industrial productivity and competitiveness.
Manufacturing has a strong multiplier effect: every new industrial investment generates employment, strengthens supply chains, increases exports, and broadens the tax base. With a population exceeding 250 million and a strategic location connecting South Asia, Central Asia, China, and the Middle East, Pakistan offers significant opportunities for industrial expansion. By ensuring macroeconomic stability, improving ease of doing business, and maintaining a competitive investment environment, Pakistan can attract both domestic and foreign investment, transform its manufacturing base, and achieve higher, export-led, and sustainable economic growth.
PAGE: Are there any incentives in the recent Federal Budget for investment in Pakistan?
Zia Ul Mustafa Awan: Yes, the Federal Budget 2026–27 introduces several investment-oriented incentives aimed at improving the business environment, encouraging formal economic activity, and strengthening investor confidence. Although the budget has been prepared under fiscal constraints, it contains measures that can positively influence investment decisions. One of the most significant incentives is the abolition of Section 7E of the Income Tax Ordinance, which taxed deemed income from immovable property. This step is expected to improve confidence in the real estate and construction sectors. In addition, the Government has reduced the advance tax on foreign transactions through debit and credit cards from 5% to 0.5%, lowering the cost of international business and digital payments. The Budget has also introduced a 10% tax credit for businesses investing in electronic invoicing systems, software, and hardware required for integration with the FBR’s digital platform, encouraging digital transformation and improved tax compliance. Furthermore, the concessionary 0.25% final tax regime for IT and IT-enabled services exports has been extended until Tax Year 2029, providing long-term certainty for one of Pakistan’s fastest-growing export sectors. In my opinion, these incentives send a positive signal to investors. However, fiscal incentives alone are not sufficient. Sustainable investment requires policy continuity, macroeconomic stability, affordable energy, efficient regulations, ease of doing business, and a predictable tax regime. If these structural reforms continue alongside the incentives announced in the Budget, Pakistan has the potential to attract greater domestic and foreign investment, enhance industrial competitiveness, increase exports, generate employment, and achieve stronger long-term economic growth.