“akhuwat” a qarz e hasan programme by dr. amjad saqib 01-11-2014 “akhuwat” a qarz e hasan...

“ “Akhuwat” Akhuwat” A Qarz e Hasan ProgrammeA Qarz e Hasan Programme

ByBy

Dr. Amjad SaqibDr. Amjad Saqib01-11-201401-11-2014

VISIONVISION

A poverty free society built on the A poverty free society built on the principles of compassion and principles of compassion and

equityequity

MISSIONMISSION

To alleviate poverty by empowering To alleviate poverty by empowering socially and economically marginalized socially and economically marginalized

families through interest free families through interest free microfinance and by harnessing microfinance and by harnessing

entrepreneurial potential, capacity entrepreneurial potential, capacity building and social guidance. building and social guidance.

PHILOSOPHY Muakhat or Brotherhood

OPERATIONAL STRATEGY Microfinance

STORYSTORY

First LoanFirst Loan

Rest is HistoryRest is History

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Process, PrinciplesProcess, Principles

AndAnd

AchievementsAchievements

PROCESS PROCESS

• ESTABLISHEMENT OF A CREDIT POOLESTABLISHEMENT OF A CREDIT POOL

• SMALL LOANS SMALL LOANS (Qarz e Hasana)(Qarz e Hasana) TO THE TO THE POOR FROM CREDIT POOLPOOR FROM CREDIT POOL

• LOANS ARE GIVEN to: LOANS ARE GIVEN to: • START OR EXPAND BUSINESS orSTART OR EXPAND BUSINESS or

• SOCIAL NEEDS SOCIAL NEEDS

• INCREASE IN INCOME OF POORINCREASE IN INCOME OF POOR

• IMPROVEMENT IN QUALITY OF LIFEIMPROVEMENT IN QUALITY OF LIFE

• ALLEVIATION OF POVERTYALLEVIATION OF POVERTY

• A BETTER SOCIETYA BETTER SOCIETY

PRINCIPLESPRINCIPLES

• LOANS GIVEN FROM CREDIT POOL ARE LOANS GIVEN FROM CREDIT POOL ARE INTEREST FREE INTEREST FREE

• ACTIVITIES CENTERED IN MOSQUE ACTIVITIES CENTERED IN MOSQUE AND CHURCHAND CHURCH

• VOLUNTEERISMVOLUNTEERISM

• REPLICATION AND EXPANSIONREPLICATION AND EXPANSION

• OUR BORROWERS ARE OUR DONORS OUR BORROWERS ARE OUR DONORS AS WELLAS WELL

PICTURESPICTURES

BUSINESSESBUSINESSES

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PICTURESPICTURES

MOSQUESMOSQUES

&&

CHURCHESCHURCHES

2020

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A Loan Disbursement Event in a Mosque

A Loan Disbursement Event in a Church

Awareness Event in a Mosque

2424Akhuwat Event in a Mosque (Chiniot)

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PICTURESPICTURES

VOLUNTEERISMVOLUNTEERISM

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Akhuwat Fundraising Dinner 2014 at Governor House - Lahore

What have we done?What have we done?

AchievementsAchievements

ACHIEVEMENTS IACHIEVEMENTS I

• Started in 2001 with a first donation of Started in 2001 with a first donation of Rs. 10,000 (US $ 100)Rs. 10,000 (US $ 100)

• Credit Pool now has grown to Rs. 4 Billion Credit Pool now has grown to Rs. 4 Billion (US $ 40 Million)(US $ 40 Million)

• This Pool is a Revolving fundThis Pool is a Revolving fund• The amount is regularly disbursed and The amount is regularly disbursed and

recoveredrecovered• Cumulative disbursement is Rs. 11 Billion Cumulative disbursement is Rs. 11 Billion

(US $ 110 Million) (US $ 110 Million)

ACHIEVEMENTS IIACHIEVEMENTS II• Total Branches: 300Total Branches: 300

• Presence in 190 Cities and towns in PakistanPresence in 190 Cities and towns in Pakistan

• Total borrowers: 630,000Total borrowers: 630,000

• Recovery Rate : 99.85 %Recovery Rate : 99.85 %

• Staff : 2000Staff : 2000

• A new model in the world of Micro FinanceA new model in the world of Micro Finance

• Included in the syllabus of Two International Universities Included in the syllabus of Two International Universities (Lahore (Lahore

University of Management Sciences, Lahore and University of Southern University of Management Sciences, Lahore and University of Southern

New Hampshire, USA)New Hampshire, USA)

REPLICATIONREPLICATION

&&

EXPANSIONEXPANSION

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Chief Minister Self Employment Chief Minister Self Employment Scheme – CMSES (Punjab & Gilgit Scheme – CMSES (Punjab & Gilgit Baltistan)Baltistan)

• Fund of Rs. 3 Billion for Punjab & Rs. 200 Million Fund of Rs. 3 Billion for Punjab & Rs. 200 Million for Gilgit Baltistanfor Gilgit Baltistan

• Outsourced to AkhuwatOutsourced to Akhuwat

• All districts of Punjab province & Gilgit BaltistanAll districts of Punjab province & Gilgit Baltistan

• Disbursed so far Rs. 5 Billion (400,000 borrowers)Disbursed so far Rs. 5 Billion (400,000 borrowers)

• Third party monitoringThird party monitoring

• Operational expense paid by provincial Operational expense paid by provincial governments governments

• Priority to women & skillful youthPriority to women & skillful youth

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Prime Minister Interest Free Prime Minister Interest Free Loan Scheme (PMIFL)Loan Scheme (PMIFL)

• A fund of Rs. 3.5 BillionA fund of Rs. 3.5 Billion

• 1 Million loans in 4 years1 Million loans in 4 years

• Outsourced to Pakistan Poverty Alleviation Outsourced to Pakistan Poverty Alleviation Fund (PPAF)Fund (PPAF)

• PPAF identifies partners who implement the PPAF identifies partners who implement the programmeprogramme

• PPAF monitors & is accountable to Ministry PPAF monitors & is accountable to Ministry of Finance through a steering committee of Finance through a steering committee

• Progress - TargetProgress - Target

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ConclusionConclusion

Inculcating a spirit of sharing & Inculcating a spirit of sharing & demonstrating that Akhuwat or demonstrating that Akhuwat or Muakhat (Brotherhood) is a Muakhat (Brotherhood) is a viable concept and poverty can viable concept and poverty can be reduced through Qard-e-be reduced through Qard-e-Hassan.Hassan.

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Thank YouThank You

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