ISLAMABAD: A policy overhaul in each sector of the economy is required to put Pakistan on the path of sustainable and inclusive growth, said Khalid Hafeez, Finance Manager of Hum Networks Limited, a media entity.
During a conversation, he provided WealthPK with an honest analysis of the state of the Pakistani economy.
Q: How is your firm placed amid continuing economic vulnerability and political noise?
A: The company’s margins have been eroded to some extent amid high inflation, rising energy costs, and exchange rate volatility coupled with political unrest. However, in order to maintain sustainable growth, Hum Networks Limited’s management continues to invest in products and services. With a strong board, good infrastructure, and well-defined business goals, we are in a strong position to achieve far stronger growth as a company. We are taking steps to become an even more resilient, digital, and future-focused media and entertainment company.
Q: What is the competitive landscape and market positioning of your company, and what steps does your company take to promote innovation?
A: Any significant change in the rupee-dollar exchange rate does have a significant effect on our economy and, as a result, on our business, impacting our revenues and costs. The company has, however, a strong framework put in place for risk management, for recognising, evaluating and reducing business risks. This framework aims to increase the company’s competitive edge, foster transparency, and reduce negative effects on the business objective.
Q: Who creates your company’s investing policies, and how do you aim to protect the value of your investment portfolio from possible market risks?
A: The company has a board of directors made up of a diverse group of individuals with experience and knowledge in finance, compliance, and entertainment industry.
The board devises policies aimed at generating new revenue streams and potential risk management. It helps preserve the interests of the company’s shareholders.
Members of the BoD are well aware of their duties and work to put in place rules and procedures that are consistent with the company’s mission. The BoD makes sure that the financial statements accurately reflect the company’s financial position.
Q: What fuels economic instability, and how can it be done away with?
A: The country’s economy is hampered by sluggish growth, high unemployment and inflation, declining investment, large fiscal and current account deficits, and a deteriorating home currency. Due to limited international capital inflows and significant debt repayments, foreign exchange reserves are rapidly decreasing as only around one month’s worth of imports can currently be paid out of Pakistan’s foreign reserves. These are the outcomes of the economy’s structural issues not being addressed in a timely manner. To put Pakistan on a path of inclusive growth, immediate policy changes are required, including strengthening public finances through revenue mobilisation, reducing wasteful and low-priority spending, strengthening fiscal decentralisation framework, bringing reforms in energy sector; and reducing government involvement in the economy.
Performance in 2021-22
During the financial year 2021-22, the company generated revenue of Rs6 billion over Rs4.3 billion in FY21, posting an increase of 39% year-on-year.
The gross profit for FY22 stood at Rs2.46 billion, 68% up from a profit of Rs1.47 billion in FY21.
Profit-after-taxation for the year increased to Rs1.36 billion from Rs1 billion in FY21, posting 34% increase year-on-year.
About the company
Hum Network Limited was established as a public limited company on February 25, 2004. Production, advertising, entertainment, and media marketing are its main concerns.
