Prof. Dr. KHAWAJA AMJAD SAEED

Prof. Dr. Khawaja Amjad Saeed is a versatile scholar. He holds two Master Degrees in Commerce (M.Com.) from the University of the Punjab (1959) and in Business Administration (MBA) from the American University of Beirut with Charter from the State of New York, USA (1970). He is a Fellow Member of all the six Professional Institutes of Pakistan, i.e. the Institute of Chartered Accountants of Pakistan (FCA 1966), the Institute of Cost and Management Accountants of Pakistan (FCMA 1971), the Institute of Corporate Secretaries of Pakistan (FICS 1974), the Institute of Marketing Management (FIMM 1986), the Institute of Taxation Management (FITM 1988), and the Institute of Chartered Secretaries and Managers (1990). Besides holding a Bachelor Degree in Law (LL.B.) from the University of the Punjab (1976), he is holder of Diplomas in Industrial Accountancy from the British Tutorial Institute, London (1964), in Project Analysis – Industry and Infrastructure from the United Nations Asian Institute of Economic Development and Planning, Bangkok (1971) and certificate holder in Teaching of Project Analysis from the Economic Development Institute of the World Bank, Washington D.C. (1979). He obtained Degree of Philosophy in Business Administration (Ph.D.) from California, USA (1981) and contributed doctoral dissertation on “Survey and Analysis of Financial Disclosure in Corporate Sector for Public Use: A Case Study from Pakistan.

For further detail about Prof. Dr. Khawaja Amjad Saeed Achievements ,Research &Educational Activities please Visit http://www.kamjadsaeed.edu.pk/

Q:  Please introduce yourself in detail about education and achievements?

Prof. Khawaja Amjad Saeed:  By the grace of Allah, I enjoying 50 year of my work in Pakistan and aboard. I was educated aboard and as well as at home, I received my first master degree from Hailly collage of Commerce  Punjab university at 1959 and latter started work with colony group of Industries, after completed my CA, I went America University beruet for my MBA program and latter than, I obtained my L.L.B degree from the University of Punjab. I also completed my PhD from California  in 1965. I started teaching from the university of Punjab and I retired from their as pro Voice Chancellor and I also served for Punjab university as acting Voice Chancellor. During my responsibilities I set up 2nd business school in the history of the Pakistan known as IBA- Punjab University and I produce 31 books during my teaching period.  

Q: Share the role of Hailly Collage of Banking and Finance for development of banking and insurance in Pakistan.

Prof. Khawaja Amjad Saeed:  Qaid-e-Azam said, Education in Pakistan should take specialized determine and given emphases in specialized education on Banking, Finance and Insurance, but unfortunately very few university start specialized master and MBA’s program for Finance. Financial services in Pakistan is a very big sector, if u look at the other sector of financial services, listed sector are six, Modaraba, Mutual funds, Leasing,  Investment Bank, Commercial and Development bank and insurance. These six components, they constitute huge component even the listed capital on stock exchange. IBP just offer diploma courses for finance and Banking. So the Punjab University thought ,we should offer specialized MBA banking program. In 2003 governor Punjab inaugurated this program. We offer BBA and 2 year MBA program for morning and 2 year evening executive MBA program and in 2006 we also started MBA insurance & Risk management. We have 1570 out of 350 are females.

Q: Being the expert in banking industry, what’s the recent development on Banking Sector especially in Islamic Banking in Pakistan?

Prof. Khawaja Amjad Saeed : I think Banks are better working than insurance sector. Banks have 7,000 branches, we have foreign bank, cooperate Bank, agricultural bank, Micro Finance bank, Islamic bank, women banks etc but you compare it with insurance sector the result is very different.
Now regarding Islamic Banking, Islamic Banking registered a tremendous growth in last three decades in the whole world, it is very interested in growth 15% per year and near about 45 countries have Islamic Banking operations. But misfortunately parallel Banking also continuing, I hope in some of the country, the parallel banking come must be finished, just Islamic Banking should be there rather than parallel banking. I should take the story of Pakistan for example the Islamic Ideology council of Pakistan under the constitution of 1973 said Interest taken by the  Bank as bad as usuary or riba, there for they said, Riba is un Islamic according to the Quran. It must really come to finished, but its implementation process is very slow. If you look at the Bahrain, 26 bank there, AAOFI is there, which designing Islamic corporate and Finance Accounting standards etc. other countries also have very tremendous progress in Islamic Banking.
Right now there are 173 Islamic Banking branches in Pakistan. The break up 173 branches as under.

When you compare 170 branches to 7000 conventional branches, you see the percentage of Islamic Banking branches very low; people do not have proper facility to open the Islamic Banking account in the rural areas. So I think, we should to tact its, Islamic banks should  do the following to improve their operations.

• They must increase the network of branches
• The must offer the product which are different from conventional bank’s products
• Islamic Banks must introduce Innovative product
• Performance should be better than the conventional banks
• Introduce new and modern services.
• Serve the customer much better manner.
• Expand their network in rural areas as well.

I appreciated the effort of Meezan Bank to serve the customer from 8 to 8 pm. It is a good start

If you see the Bank of Khyber Operation, which is claimed as a Islamic Bank, its share quoted 14 rupee rather than 10 rupee of par value and when you look at UBL its near about Rs. 200 and MCB cross Rs. 300 and NBP 250. So there is need of the time to improve Islamic Banking services as well as corporate performance to compete the Conventional Banking..

I visited Indonesia and Malaysia, I see china’s are enjoying the Islamic Banking & Takaful. They prefer to open their bank account in Islamic Banks and take takaful to insure their asset.  I am very impressed to see that non muslim are very impressed by Islamic Banking & Takaful. Many Islamic Bank & Takaful Companies out performing there.

Q: What are the major challenges faced by Islamic Banking & Insurance industry in Pakistan right now.

Prof. Khawaja Amjad Saeed Many challenges I highlighted in above. Govt. of Pakistan must be support the Islamic Banking, Govt. Banks must open more Islamic Banking Branches, the progress of NBP, HBL, BOP and other Govt. Banks are very slow in Islamic Banking

While the other hand in insurance industry, Contribution of Insurance of according to GDP just 0.94,  which is not only the 1% of the GDP. There are 29 Insurance Companies listed in the stock, Many Insurance companies are sick and these need surgical operation and I carried out the figure that 80% of the insurance business taken by the only 3 companies in Pakistan. We need livestock, crop, un-employment and other many type of insurance in Pakistan. The object of the insurance is 2 things. Hedge against the possibilities of risk and 2nd peace of mind. The public sector of insurance be privatize immediately, state life must be immediately de nationalized. Excluding the health insurance, there are just 2,200,000 people are insured and these figure are so small. There are need much efforts to promote the insurance industry in Pakistan.

Q: Islamic Banking Industry have a big problem of HR, what’s the planning of your institution to tackle this issue?

Prof. Khawaja Amjad Saeed :  This is a good idea to instant start MBA program in Islamic Banking, it will be a good idea but go step by step. We can begin to start specialization on Islamic Banking, 12 courses general and 8 courses on Islamic Banking. But we have very much problem for trained teaching staff for Islamic Banking Subject.

We also in contact with INCIEF Malaysia in this scenario, I am looking forward to some type of collaboration with some International Islamic Banking institutions.

Malaysian’s, Harvard and other many international Universities issued Master degree in Islamic Finance, what’s the your future programs in this regards.

Prof. Khawaja Amjad Saeed :  I have my feeling a non muslim not intend to Islamic way of life, I have attended a program in Malaysia, where non muslim trying to speak on Islamic Finance, so I raise the point on them, look you are not mulsim and do not have belive in islam and what are you doing here and they are just doing marketing holmic in term of this.  I think any body teaching Islam finance, he must embraced Islam First. Our problem is that Muslim world never invested in Human Resources, Mughals never setup a single university, they constructed Taj Mehal, Shalamar Gardens  etc

Another problem to starting all kind Islamic Banking program. Ulma do not seem to have grip on modern education, and if any person have modern education that never grip on Islamic jurisprudence. Therefore for the situation right now, there is need of synergy. both should sit together to cater the issue.

Islamic Riets, Sukuk & Takaful are emerging market in the World, What’s your point of View on these new concept of Islamic Finance?

Prof. Khawaja Amjad Saeed :  The honorable of president Islamic Development Bank said, one of the big challenge is that to develop new Islamic instruments, you know we have debenture to raise money and debenture are un Islamic, and we are now moving to sukuk.  By the grace of Allah Pakistan have experiment to sell sukuk in international market also in Pakistan. Pakistan need lot of sukuk because new big project are coming like big dams, energy and housing project etc.

Regarding Takaful, as you know, there is vast scope of insurance in the country and insurance start when we have no Islamic economics in the country. So therefore people take insurance. Many people are feeling insurance is not Islamic, so there is a huge potent ional in Islamic Insurance. We raise DFI through the operation of Takaful companies in Pakistan.

Q: Any Message to the reader of the AlHuda: Islamic Banking and Finance News?

I like to congratulate Zubair Mughal to start  Internatianol Online Magazine from Pakistan with free subscription. This is a great initiative to aware & educate the people and spread the message of Islam. You magazine is doing a good job and we must be promote it.