Exploring new horizons in microfinance: Akhuwat disburses Rs 1 billion interest-free loan

Akhuwat has disbursed Rs 1 billion interest-free loan to 90,000 families in 10 years with a view to improve the lives of the poor with 99.8 percent return rate. It is the most innovative cost effective microfinance model because of its creative use of community infrastructure and voluntary spirit of the members in the community in which it operates.
Speakers expressed these views in a seminar on Exploring New Horizon in Microfinance -Akhuwat organised by University of Central Punjab and Akhuwat on Thursday. The seminar was addressed by former governor Punjab Lt. General Khalid Maqbool (Retd), former finance minister Sartaj Aziz, Director Islamic Banking State Bank of Pakistan Saleem Ullah, Emeritus Professor of Enterprise Development Cranfield School of Management UK Dr Malocom Harper, Executive Director Akhuwat Dr Amjad Saquib, founding director Akhuwat Dr Kamran Shams and Pro-Rector UCP Dr Tahir Ali Hijazi.
Speakers also stressed the need to develop and promote such type of microfinance models. They also said that in the new decade microfinance institutions will face the challenge of inflation and institutions should come out with the new idea to solve this issue.
Speaking on the occasion Sartaj Aziz said that micro-finance is essential to promote self-employment in the country. He lauded the efforts of Akhuwat for lending money without interest to the needy people. He also said that in microfinance, interest rate is usually high because in low borrowing cost is high. He said that micro finance should be promoted to alleviate poverty in the country.
In his address Director Islamic Banking State Bank of Pakistan Saleem Ullah dilated on the potential and possibilities of Islamic Banking. He said commercial banking could only be beneficial for the rich whereas microfinance is contributing a lot for the poor. In Pakistan more than 200, 000 people are benefiting from it. He said that core objective of the microfinance should be poverty alleviation. He appreciated the role of Akhuwat for introducing a new innovative approach in micro-finance.