Interview with KalPoint.com


KalPoint.com (KPDC): Please tell briefly about yourself, your education and background.

Moin Fudda (MF): I come from a middle class family. Our ancestors were originally from Thatta and later moved to Junagadh. My father then went to Mozambique and started a business there but unfortunately lost money. Then he came to Pakistan. He was a man of financial background. We are four brothers. I am the youngest and the only one in service, the rest are engaged in business. I began working at the age of 9, when after attending primary school in the morning; I used to sell garments in the afternoon. Thus, I was fortunate to have realized the value of life in my childhood. After completing Matriculation, I wanted to attend college in the morning as opposed to my brothers who completed their graduations by studying in the evening college. I financed my college fee as a working partner in a General Store, in which my uncle invested and became a sleeping partner. I used to open the store after Fajr prayer and my grand father shared my burden from 8.00 a.m. till 2.00 p.m.

One day I saw an advertisement in a newspaper for grant of scholarship towards B.S. in Insurance and Economics, at the RCD College of Insurance and Economics in Tehran. Since my uncle was in that profession I got inspired and applied. Fortunately, I was one of the three students who were selected from Pakistan. I waited and waited for an airline ticket, but when quite some time passed, an officer from the Pakistan Insurance Corporation was surprised to see me in the corridor of that building and advice me go to Islamabad to find out about the status of my Scholarship. Upon reaching the Ministry of Commerce I learnt that a nephew of minister went in my place. I told the Joint Secretary that I had no choice but to go to the Editor of a Daily and lodge my complaint. He thereafter had a word with the Minister and I was assured a seat in the Spring Semester of 1975.

Therefore on 29th January 1975 I stepped out of the country for the first time with only $30 in my pocket. The first thing I did was to learn Persian, although the studies were in English, but keeping in mind that I had to spend 3 ½ years in that country, I thought it would help me a great deal. My life used to begin at 6:30 in the morning, going for a job and finishing at 1:30, then attending college from 2:00 onwards and finishing at 9:30 p.m. On Fridays, I used to go to spiritual places such as Mazar and Library of great Scholar and Sufi Shah Abdul Azim or in Kum and on long weekends to Mashad. On Thursdays, I gave tuitions as well and after having reasonable command on Persian language, did correspondence for a local Trading Company. Thus upon completion of Degree I was able to save enough to pursue MBA in Insurance and Risk management from the St. Jones University (formerly College of Insurance in New York) When I obtained the Master’s I was offered a job by American International Group, the largest international Insurer in the world and also became Adjunct Assistant Professor at The College of Insurance.

Then my mother expired in 1979, when I was in the USA, which was a major shock of my life. When I returned home I had an arranged marriage, which turned out to be best decision of my life. We stayed for a few years in USA when she convinced me to relocate to Pakistan

It so happened that my first job was with Pakistan Insurance Corporation (PIC) as an Executive Director. I recall that when I gave an interview for RCD Scholarship at PIC, the Deputy Managing Director, at that time, had asked me very difficult questions, and I said to myself that one day I must occupy this chair. So, God fulfilled my desire.

Then I joined Commercial Union, the largest British Insurer now Aviva as Country Chief, until they decided to leave from 6 countries, including Pakistan. The project, which I started in 1996, which I will always cherish, was a Cataract Cure Operation. The company was planning a major advertising campaign, but instead, I decided to spend money by carrying out cataract operations in the interior of Sindh and Punjab. As a result the Company earned a good slogan CU for Life.

Since CU was also managing the New Zealand Insurance, the New Zealand Government decided to set up their trade office but found only two investments from that country. They were ANZ Bank and New Zealand Insurance. They offered me an Honorary position of trade representative and within a year the trade volume doubled. They then appointed me as their Honorary Counsel followed by Honorary Consul General for Pakistan since the High Commission is based in Tehran. During the period I was decorated with two medals, one on 150 years of celebrations of New Zealand and other being NZ Order of Merit ONZM.

While in CU I took part in the activities of the Management Association of Pakistan and Overseas Investors of Chambers of Commerce and Industry and I was fortunate to have been elected President of both the organizations for the year 1999-2001 and 2001-2002 respectively. I was also appointed member of Board of Investment and served on the Board of Governors of Pakistan Institute of Management. I continue to serve as member of Privatization Commission and CBR has nominated me as Chairman, Alternate Dispute Resolution Committees.

After leaving CU, I had an option either to continue in the Insurance field or to pursue career in different field. Amongst a few offers that I had, I chose Karachi Stock Exchange, since my minor in MBA was Risk Management and that having served as MAP’s nominee on the Board of KSE for 1998-99, I was familiar with the working of the organization. Now I am honoured to say that I have recently been given the “Sitara-e-Imtiaz” award by the President of Pakistan.


KPDC: What is the reason why the Pakistani market has been unable to get any notable foreign portfolio investment, despite the fact that the economy of Pakistan has improved?

MF: Well, you see a fund manager has to evaluate each market. And I know a dozen fund managers who are consistent and have not withdrawn. But they see different markets from different perspectives. Since we have a very few liquid stocks and the float is too small, our weiatage in Morgan Stanley or other indices is not large enough to attract fund managers. However, with public offerings through privatization and new listings the situation is expected to improve but we should not forget, and be grateful that with the economic reforms, the KSE was the best performing market in the world in 2002 and in subsequent years it also recorded good increase. We received major investment from overseas Pakistanis and today KSE’s market capitalization is in excess of equivalent to US$ 35 billion.


KPDC: If the restrictions between Pakistan-India trades are removed, how much will we be benefited from it?

MF: We need to prepare ourselves for competing with India and for that matter china to protect our domestic market from dumping of cheaper goods. Quality of our products is superior but today’s customer is price conscious, so we need to bring down cost of production and our manufacturers and middlemen have to settle for lesser profits otherwise we will get closer to trading. Moreover we need to focus on Agro based industry and invest in dairy farming and food processing which could also help us in tapping the Indian markets. It has taken 50 years for strawberries to be sold on the streets and bulk of cherries from Baluchistan cannot get to Karachi, for either not having good infrastructure or lack of good packaging industry, whereas Iranian cherries have captured the markets. We are one of the largest milk producing country in the world but still have to import milk powder and other dairy products, which otherwise should be exported not only to India but also to Middle East.


KPDC: Why is the stock market so volatile? The market came down from 11000 points to 7000 in just 6 months. Why is that so?

MF: I suggest people should read the KSE Management’s comments on the Task Force report, which will enable them to understand the reason for surge and decline.


KPDC: What were the notable achievements of the Management Association of Pakistan during your tenure?

MF: I had a very busy and exciting period when a number of corporate world luminaries including Mr. Shaukat Aziz, Mr. Mohammmad Mian Soomro, Mr. Moeen Qureshi, Dr. Abdul Hafeez Sheikh, Dr. Ishrat Husain and other speakers from abroad, first time addressed the MAP’s Forum. I also embarked on field trips for members of the MAPS to various organizations


KPDC: What about the achievements of the Overseas Investment Chamber of Commerce during your tenure as President?

MF: I worked hard to protect the interest of pharmaceutical companies, where the government was being tough on them, One achievement that I cherish is that the government was determined to impose tax on pension for the private sector employees and the bill was almost ready and about to go in to the budget. I had the opportunity to meet the President of Pakistan at the residence of Chairman EPB, Mr. Tariq Ikram where I raised the issue and the President was kind enough to pass the instruction to do away with that proposal, which made a large number of private sector employees, including those who had retired, relieved from the likely additional burden.


KPDC: Any message you would like to give to the youth of Pakistan.

MF: You only have two assets in your life: time and tongue both are precious, making good use of these can make you happy not in this world but the world thereafter.

Q1: In present market conditions what advice would you give to small investors? (Shayan – Islamabad)

MF: When the level of greed becomes your need, you have a major problem. I always advice investment with due research or at least consult a couple of experts, do paper work such as keeping a copies of account opening form and for transactions carried out and pay to the broker and not to their agents, open your own CDC account since you should be the custodian of your shares. Unfortunately, innocent people due to lack of understanding, enter the market at wrong times and not been able to absorb small loss, end up losing bulk of their capital. I took the initiative of publishing two investment guides in English and Urdu and my advice is that investors either small or big should make a good reading of it.


Q2: The law and order situation of Karachi is not good. Are the investments coming after the uproar in the city of Karachi? What do foreign investors say in this situation? (Mubin – Dublin)

MF: I don’t think the law and order situation in this city is as bad as it was in 1988. There was a day in Karachi when around 50 kidnappings took place and 34 cars were taken away. The entire Nazimabad area was under curfew. Those were the worst days. Today law and order in Karachi has improved a lot. However, unfortunately there is a rise in theft of mobile phones etc. But for foreign investors, those who are here for many years, this country has always offered handsome returns e.g. my previous Company CU in 52 years lost money only in one year. Majority of the pharmaceutical and other multinationals have made handsome profits and have reinvested the reserves towards expansion. Unfortunately, perception of the country remains poor and for that we have to blame ourselves because we at public places, particularly with foreigners around, start blaming our country. For prosperity of Pakistan, that thinking and approach needs a definite change.


KPDC: It was a great pleasure conducting you interview. C U On Net.

MF: It also enjoyed it. C U On Net 2.




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