FAISALABAD: The "Akhuwat" Pakistan has the unique privilege to launch and successfully handle the world's biggest programme for micro and interest-free loans. Under this mega project Rs 150 billion have so far been disbursed through 4.4 million small loans. The recovery rate of these loans is amazingly 99.9%, said Dr. Amjad Saqib Founder and Chief Executive Officer (CEO) of the Akhuwat Pakistan.

Addressing a special function in Faisalabad Chamber of Commerce and Industry (FCCI), he said that out of total loan amount Rs. 8.5 billion have been distributed through 3.25 lac loans in district Faisalabad and its recovery rate was recorded as high as 100%. He said that these figures clearly indicate that micro and small businesses could be run without interest and this notion is totally absurd that people are not willing to return back the interest free loans.

He explained that basic philosophy of "Akhuwat" and said that it is based on "Mawakhat-e-Madina" (Muslim brotherhood). "This system was launched about 20 years ago, and we have proved beyond any doubt that interest is not prerequisite for economic stability and it could also sustain and grow with interest free loans", he said and added that the government of Pakistan has now acknowledged that interest free loans are most viable banking tool in Pakistan.

Quoting the recent budget speech of Finance Minister Shaukat Tarin that the government intends to offer interest free loans up to Rs. 0.5 Million to needy segments, including farmers. Dr. Amjad said that Faisalabad is known for its business entrepreneurship and hence FCCI should nominate at least one lac potential, honest and serious individuals so that Akhuwat could arrange interest free loans enabling them to start their own businesses. "These persons would not only earn their own respectable livelihood but also contribute their productive role in the overall national economy", he added.-PR

Copyright Business Recorder, 2021