Latest news with #ZafarMasud
Business Recorder
05-08-2025
- Business
- Business Recorder
Circular debt: banks to the rescue
Another year, another circular debt headline. But this time, something different has happened. For the first time in years, Pakistan's power sector has seen a significant resolution of circular debt stock, even if the flow remains a looming threat. Recent Power Division data shows circular debt at Rs 2.396 trillion as of March 2025, a marginal increase since July last year, and Rs 398 billion lower than March 2024. This is no small feat for a system accustomed to perpetual bleeding. Credit where it is due: the government has taken tough steps to control leakages, enforce cash flow discipline, and ring-fence funds to repay sector debt. The Finance Ministry's decision to redirect the Rs 3.23/kWh Debt Service Surcharge (DSS) solely towards debt reduction, rather than letting it disappear into the general pool, reflects fiscal prudence. Zafar Masud, Chairman of the Pakistan Banks Association (PBA), recently highlighted that this time, reforms go beyond temporary bailouts. There is an emerging focus on plugging systemic leakages, enforcing timely payments across the supply chain, and rethinking subsidy structures to reach the vulnerable without distorting the entire revenue cycle. Enhanced governance in DISCOs and technology-led oversight using digital monitoring tools are being rolled out to reduce theft and line losses, chronic ailments that have plagued the sector for decades. However, let's be clear: this is not the end, only a breather. NEPRA warns that average utilization of our 45,888 MW installed capacity remains just 34 percent, and even peak utilization is a mere 56 percent. Consumers continue to pay for idle capacity while distribution companies remain plagued by infrastructure decay, theft, inflated billing, and dismal recoveries. Without addressing these legacy issues, including both infrastructure upgrades and efficient collections, we will soon find ourselves back at square one. What makes this circular debt resolution truly historic is its scale and execution. It involved Rs 683 billion as the largest-ever restructuring of government debt sitting on bank balance sheets, combined with Rs 612 billion as the largest fresh syndicated financing ever raised independently. Collectively, this has become the largest banking transaction in Pakistan's history, by leaps and bounds, nearly 4.5 times bigger than the previous largest transaction. This was not only the largest, but perhaps the quickest execution ever of such a complex, multi-stakeholder financial transaction. The banking industry stepped up, taking a larger view of economic revival, knowing that healthier power sector cash flows will reduce financial risks and unlock growth opportunities for banks themselves. Banks agreed to a 150-basis-point reduction in their rate, bringing the new facility to KIBOR minus 90 bps. If rates fall, repayments will accelerate, potentially clearing this debt within four to six years. This frees up bank balance sheets, releases sovereign guarantee headroom for priority sector financing, and revives liquidity within the power sector itself. Power companies now have the room to invest in upgrades, efficiency, and financial discipline, while banks can redeploy freed capital into productive lending for SMEs, agriculture, green energy, and industrial revival. This is the kind of systemic fix that supports economic growth directly and indirectly. To bring all partners together, the PBA played a central and strategic role, building consensus, aligning stakeholder interests, and ensuring this was not just a transaction but a transformative milestone. The government's role has also been critical in enforcing discipline, but it is the collaborative spirit between the government, banks, and regulators that has created this breather. For the first time in years, there is visible alignment to move from crisis management to long-term planning. But let us be clear-eyed: the real battle is far from over. While the stock has been resolved at this point in time, the flow must stop and remain stopped going into the future. If we lose momentum, if governance reforms stall, if privatization of DISCOs remains shelved, if distribution efficiency improvements and collections falter, we will end up back where we started. Circular debt is not a disease in itself; it is a symptom of a broken system. Today, we have bought time. This is a positive step in a journey that must continue with unrelenting focus. The power sector crisis was not created overnight, nor will it be resolved overnight. But for the first time in a long while, there is a sense of shared responsibility, decisive action, and cautious hope. Let us not lose the momentum. The real work has just commenced. (The writer is advisor — Pakistan Banks Association) Copyright Business Recorder, 2025
Business Recorder
05-07-2025
- Business
- Business Recorder
Digital & financial inclusion of women: WCCI, UNDP hold provincial dialogue
LAHORE: In a concerted effort to empower women and bridge Pakistan's widening gender gap, the Women's Chamber of Commerce and Industry Lahore (WCCIL), in collaboration with UNDP's Punjab SDGs Unit, convened a high-level provincial consultation titled 'Bridging the Gender Divide | Empowering Futures through Digital and Financial Inclusion of Women.' Chaired by the President of Bank of Punjab Zafar Masud, the dialogue engaged esteemed speakers from diverse sectors with UNDP, represented by Dr. M. Aman Ullah, Project Manager, Punjab SDGs Unit; Dr. Shehla Javed Akram, Founder Women's Chamber of Commerce and Industry, Falahat Imran, President WCCI; Ahmed Khan, CEO PSDF; Prof. Dr. Uzma Qureshi, Vice Chancellor, Lahore College for Women University, Ayub Ghuri, Executive Director Netsol, and Ms. Rie Komahashi from JICA. The keynote address was delivered by Zafar Masud, President of the Bank of Punjab, who emphasized the critical need for expanding access to financial services for women and young entrepreneurs. 'Local chambers must give a list of local global and regional supply chains to which local women entrepreneurs can connect to while transcending baking and dress making', said Zafar. Further he stressed to create some bankable projects/financial empowerment schemes that could be run or supported by Bank of Punjab. 'This provincial dialogue is not just a discussion; it is a commitment to action. We are working to ensure that women are not only included in Pakistan's digital and financial ecosystems but empowered to lead within them,' said UNDP's Dr. M. Aman Ullah. Despite some progress with 8 million more women gaining access to mobile internet in the past year; Pakistan's overall ranking in the Global Gender Gap Report 2025 remains concerning at 148 out of 148 countries. The event addressed this urgent call to action by exploring barriers such as lack of digital literacy, limited access to credit, and informal labour constraints, which disproportionately affect women-led SMEs and home-based workers. The session brought together key stakeholders from government, thought leaders, development practitioners, private sector representatives, academia, and civil society, who actively engaged in a meaningful debate followed by a Q&A session to spotlight systemic challenges and explore inclusive pathways for women's economic emancipation and digital empowerment in both formal and informal sectors. Anchored in SDG 5 (Gender Equality), the event amplified women's voices and innovation, called for public-private collaboration, and laid the foundation for scalable, gender-responsive economic solutions. Gender and fintech experts highlighted the role of women in driving economic growth, the barriers to their economic emancipation, significance of digital literacy, access to supply chains, and mentorship and skills-based training programs to support and formalize the women-led SMEs. The session ended with an action plan shared by WCCIL Founder, Dr. Shehla Javed Akram. 'To re-imagine a thriving and inclusive economy, we must enable women not just as beneficiaries, but as builders and leaders of the future,' remarked Dr. Shehla Javed Akram. The dialogue served as a pivotal step toward reshaping the landscape of financial and digital inclusion for women in Pakistan; one solution, one story, and one commitment at a time. Copyright Business Recorder, 2025
Business Recorder
08-05-2025
- Business
- Business Recorder
Pakistan's banking sector deserves a fairer narrative
In a country gripped by chronic revenue shortfalls and economic instability, one sector quietly shoulders more than its share — yet is frequently criticised. Pakistan's banking sector, the country's largest taxpayer and a critical source of fiscal stability, is often maligned rather than supported. This paradox demands re-examination —and a shift in mindset that continues to distort the public narrative. In 2024, the banking sector, comprising commercial banks, DFIs, and microfinance banks, contributed an astonishing Rs 1.6 trillion to the national exchequer. This includes Rs 856 billion in direct corporate and income taxes, Rs 63 billion in sales and excise duties, and over Rs 685 billion in withholding tax collected and paid. To put this into perspective, that's nearly five times more than what banks paid in 2021. Yet, despite this unmatched contribution, banks continue to face criticism, regulatory unpredictability, and the heaviest tax treatment among all sectors. 'The banking sector contributed Rs 644 billion in taxes in 2023 alone, and in a single day facilitated Rs 30 billion in government revenue. Yet, we are being taxed at rates nearly double other sectors. Taxation must be based on income, not balance sheet size or political expediency. We are partners in progress, not targets for fiscal patchwork.'— Zafar Masud, Chairman, Pakistan Banks Association Banks today pay an effective tax rate of 54 percent, compared to the standard 29 percent paid by most other industries. This disparity is not only disproportionate, it is counterproductive. When institutions that finance infrastructure, businesses, and public services are penalized for their efficiency, the broader economy suffers. Critics often accuse banks of prioritizing government securities over private sector lending. But this ignores Pakistan's underlying economic realities, a persistently wide fiscal deficit, underdeveloped capital markets, and a narrow, undocumented tax base. In FY24 alone, banks financed over 99 percent of the government's budget deficit, ensuring critical expenditures like defence, pensions, and social protection continued uninterrupted. This is not a diversion of resources; it is a stabilising lifeline. Banks are not turning away from the private sector. They are responding rationally to a high-risk environment, where legal enforcement is weak and formal documentation is scarce. Until structural reforms are achieved, sovereign lending remains the most prudent and often regulatorily encouraged option. 'With 54 percent of the banks' income directed to the government, it is only fair that we are treated as partners. Time and again, whenever the government has called upon the banking industry, we have always stepped up, a commitment we will proudly uphold in the best interest of Pakistan. As one of the most transparent sectors of the economy, we remain dedicated to contributing to Pakistan's progress and trust our efforts will be acknowledged.' — Atif Bajwa, Chairman, Pakistan Banking Summit Steering Committee Much of the criticism directed at banks is based on generalizations. The sector collectively employs over 200,000 people and is actively increasing gender diversity under the State Bank's inclusion mandate. While service delivery can always improve, to suggest banks are uniformly exploitative is inaccurate. Moreover, the banking sector is among the most heavily regulated, audited, and transparent in the economy. It is also among the most forward-looking supporting SMES, agri-finance, housing, and digital transformation, even in a volatile economic climate. 'Profitability should not be treated as a red flag; it is a prerequisite for financial resilience and national progress.' The broader issue is this, when a compliant and transparent sector like banking is disproportionately burdened with taxation while vast segments of the economy remain undocumented, the incentive structure becomes distorted. No society can progress when responsibility is concentrated on a few formal sectors while others remain unregulated and under-taxed. Pakistan's banking sector is not asking for applause—it is asking for fairness in taxation and recognition of its role as a partner in national development. It has delivered when it mattered most. A transparent, tax-compliant sector that supports public finance, SMEs, and digital transformation deserves policy consistency—not punitive treatment. It is time for policymakers and the public to do the same: anchor the debate in facts, and shift the conversation from blame to balance. Copyright Business Recorder, 2025
Business Recorder
07-05-2025
- Business
- Business Recorder
Chairman OGDCL Zafar Masud's book ‘Seat 1C' launched
ISLAMABAD: Chairman of Oil and Gas Development Company Limited (OGDCL) Zafar Masud's book titled 'Seat 1C: A Survivor's Tale of Hope, Resilience, and Renewal' was launched on Tuesday at a well-attended ceremony hosted by the Islamabad Policy Research Institute (IPRI). The event was inaugurated by President IPRI, Lt-Gen Majid Ehsan (retd). The book, which chronicles Masud's miraculous survival in a plane crash five years ago, offers a deeply personal reflection on life, trauma, and recovery. Speaking at the event, Zafar Masud said, 'I wrote this book primarily for myself, but it contains life lessons that can be beneficial for everyone.' He noted that Seat 1C explores not just his experience of survival, but also broader themes such as mental health, tradition, courage, arrogance, and survivor's guilt. Copyright Business Recorder, 2025
Express Tribune
28-04-2025
- General
- Express Tribune
'Seat 1C' launched with life lessons from a plane crash
Zafar Masud, the banker who miraculously survived the plane crash in Karachi five years ago involving the national airline, shared his story at the launch of his book, Seat 1C. Speaking at the event, he stated "I wrote this book primarily for myself, but it contains life lessons that can be beneficial for everyone." The book not only narrates his personal story but also addresses important topics such as mental therapy, the significance of traditions, courage, arrogance, and "survivor's guilt." Following the book launch, Masud was invited for a discussion and Q&A session at Habib University, where he spoke about the experiences, emotions, and reflections before, during, and after the crash, as captured in his book. The session was moderated by journalist Naveen Naqvi, and was attended by literary circles, academia, students, various figures from the banking sector, and professionals from different fields. Masud, who is also the president of the Bank of Punjab, claimed that surviving a plane crash is an experience unlike any other, and that extensive research went into the background of the book, drawing from survival stories around the world. He emphasised that in life, certain lessons are crucial and must not be overlooked, stressing that the book does not promote any political ideology; rather, it focuses on history, research, and life lessons valuable to all individuals. Masud also mentioned that literature is the best medium to express themes related to education and the economy, and this belief motivated him to write the book, which he believes can especially serve as a learning resource for youth and students. He shared that one of his favorite chapters is about rituals, where he recounts the kindness of people who immediately came to his aid after the crash. He recalled how the vehicle that transported him was later destroyed, but he remained deeply grateful for the good people who were there for him at the right time. The book also dedicates an entire chapter to the topic of arrogance, shedding light on the possible causes of the plane crash. According to Masud, the pilot's overconfidence was a major factor; despite warnings from his subordinates about landing issues, the pilot chose not to listen. Masud stated "I am an optimistic person. Without the prayers of my grandfather and the help of good people, I wouldn't be here today. Courage means not fleeing from challenges but standing firm."
