The First Shariah Certified Islamic     Micro-Finance Institute           of Pakistan          FARZ METHODOLOGY           ...
VISION  “To bring social changethrough poverty alleviation by improving productivity and capacity of partners         and ...
MISSION     Empowering the poor through    innovative products and diverse business opportunities, by integrating         ...
AN INTEGRATED APPROACH                            Financial                             Service       Health              ...
PRODUCTMUDHARBHA   THROUGH LIVESTOCK             5
TARGET MARKET• Geographical  – Rural Area• Demographical  – Male/Female/Family/  – Age Group     • 25 to 50 years  – Incom...
HALAL KAROBAR (BUSINESS)   Halal Investment in Livestock    Business Through Islamic           Microfinance
BHAI WALI (MUDARBAH/PARTNERSHIP)• Bhaiwali means brotherly Partnership• Bhai Wali is a traditional way of partnership• In ...
WHO ARE THE PARTNERS• Investor (Can be an individual or an  organization)• Farz Foundation as service provider 1• Poor Far...
MODE OF BUSINESSMudarbah, as profit and loss share accordingly.
ROLE OF THE INVESTOR• Investment at mutually agreed level• On mutually agreed profit sharing ratio.  However according to ...
ROLE OF FARMER•   Nourishing•   Grazing/feeding•   Breeding•   Provide shelter for animals•   Care & Growth
FARZ FOUNDATION’S ROLE•   Inviting for investment•   Identification of potential farmers•   Purchasing & delivery of anima...
RISK MITIGATION VEHICLE                      Support from partners                                                        ...
FEATURES OF THE PRODUCT                                                FEATURESProduct Name              BHI-WALI --1Objec...
FEATURES OF THE PRODUCT                                                FEATURESProduct Name              BHI-WALI -2Object...
FEATURES OF THE PRODUCT                                               FEATURESProduct Name              BHI-WALI -3Objecti...
SALIENT FEATURES1. The Model addresses the issue of food security at large.2. It is sustainable since Stone Age3. The poor...
OTHER FEATURES1.  80% time must be invested in the Selection of the potential partners.2.  Transparent Mudarbaha (Partners...
BRANCH STRUCTURE                                                     Social Center Manger                                 ...
CLUSTER STRUCTURE                     At Community Level        GL                        GL                              ...
DELIVERY PROCESSStep •   MOBILIZATION + TRAINING  1Step •   COMMUNITY MEETING CONDUCTED BY SOCIAL OFFICER (SO)  2Step •   ...
MOBILIZATIONIdentification of potential partners within above               mention target market.                        ...
28
29
30
TAGGING & VACCINATION                        31
AGREEMENT AND DELIVERY OF        ANIMALS    Transparency of      Agreement                            32
33
DELIVERY OF ANIMALS      First Islamic Microfinance in Pakistan   34
35
PRODUCTION OF ONE FEMALE GOAT                                36
OUTPUT BREAKUP                                                                    Market Price                            ...
PROJECT HIGHLIGHTSHeads                                          Amount in PKR          USD $             As per RateInves...
MONITORING & EVALUATION               39
40
MONITORING & EVALUATION• Daily, weekly, monthly, quarterly and six  monthly reports system.• Field visits of bottom to top...
FOOD SECURITY                42
43
HEALTH CARE First Islamic Microfinance in Pakistan   44
HEALTH CARE•   Organizing Eye care Camps•   Health Awareness Program                First Islamic Microfinance in Pakistan...
46
FUTURE PROTECTION    PROGRAM                    47
FUTURE PROTECTION PROGRAM   Educational Support to Community children               First Islamic Microfinance in Pakistan...
QUESTION ? PLEASE                    49
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Farz Livestock Mudarbaha Methodology (Halal Karobar Project)

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Farz Foundation comes up with new and innovative products of Islamic Microfinance.

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Farz Livestock Mudarbaha Methodology (Halal Karobar Project)

  1. 1. The First Shariah Certified Islamic Micro-Finance Institute of Pakistan FARZ METHODOLOGY 1
  2. 2. VISION “To bring social changethrough poverty alleviation by improving productivity and capacity of partners and staff ” 2
  3. 3. MISSION Empowering the poor through innovative products and diverse business opportunities, by integrating social performancefocused microfinance with collaborative community health and education partnerships. 3
  4. 4. AN INTEGRATED APPROACH Financial Service Health Business & Environmental education TARGET MARKET First Islamic Microfinance in Pakistan 4
  5. 5. PRODUCTMUDHARBHA THROUGH LIVESTOCK 5
  6. 6. TARGET MARKET• Geographical – Rural Area• Demographical – Male/Female/Family/ – Age Group • 25 to 50 years – Income level • Moderate poor First Islamic Microfinance in Pakistan 6
  7. 7. HALAL KAROBAR (BUSINESS) Halal Investment in Livestock Business Through Islamic Microfinance
  8. 8. BHAI WALI (MUDARBAH/PARTNERSHIP)• Bhaiwali means brotherly Partnership• Bhai Wali is a traditional way of partnership• In livestock it calls Adhiyara, means 50/50
  9. 9. WHO ARE THE PARTNERS• Investor (Can be an individual or an organization)• Farz Foundation as service provider 1• Poor Farmer as a service provider 2
  10. 10. MODE OF BUSINESSMudarbah, as profit and loss share accordingly.
  11. 11. ROLE OF THE INVESTOR• Investment at mutually agreed level• On mutually agreed profit sharing ratio. However according to this product of FF, The poor farmer gets 50% and it would be considered as expanse
  12. 12. ROLE OF FARMER• Nourishing• Grazing/feeding• Breeding• Provide shelter for animals• Care & Growth
  13. 13. FARZ FOUNDATION’S ROLE• Inviting for investment• Identification of potential farmers• Purchasing & delivery of animals• Monitoring• Health care• Supervision• Capacity building of the Farmer• Record keeping & Reporting• Selling• Profit distribution etc.
  14. 14. RISK MITIGATION VEHICLE Support from partners HALAL KAROBAR PROJECT • CapitalInvestor • AdvocacyProvincial Ministry • Capacity Building • Medical Assistanceof Livestock.University of veterinary • Human Resource • Awareness Services& Animals Sciences LHR. • ResearchLahore Meat • Standards for Halal ,Health & environment • Purchasing Animals from FFCorporation • Support in HealthResponsible Giving • ScarcityPools • And Emergency • TheftTakaful of Animal • Death 14
  15. 15. FEATURES OF THE PRODUCT FEATURESProduct Name BHI-WALI --1Objective BreedingSize Unit of 6 Goats for one poor Family ( 5 Female Goats + 1 Male Goat)Age of Animal 10 to 12 monthKind Desi /Beetal/Barbani/Kamori/RajanpuriSize of Investment PKR: 100,000/ UnitPeriod 42 to 48 monthModality of partnership 50%/50% at reproduced Goatswith poor FamilyModality of partnership Investor gain 50% of the net profitwith InvestorFarz Gain 50% of net profitThe parent Animals remain as owned by Investor and the Foundation can hold them back after 42-48 months and can transfer the animals to another poor family for the same purpose on behalf of the Investor. 15
  16. 16. FEATURES OF THE PRODUCT FEATURESProduct Name BHI-WALI -2Objective Qurbani Animals ProductionSize 5 Male Goats for one Poor FamilyAge of Animal 6 MonthKind Beetal, Rajan Puri, DesiSize of Investment PKR: 100,000/ UnitPeriod 10 to 12 MonthModality of partnership 34 % of Net Profitwith poor FamilyModality of partnership 33 % of Net Profitwith InvestorFarz Share 33 % of Net Profit 16
  17. 17. FEATURES OF THE PRODUCT FEATURESProduct Name BHI-WALI -3Objective Meat ProductionSize 10 Male Goats for one Poor FamilyAge of Animal 3 MonthKind TaidySize of Investment PKR: 100,000/ UnitPeriod 5 to 6 MonthModality of partnership 34 % of Net Profitwith poor FamilyModality of partnership 33 % of Net Profitwith InvestorFarz Share 33 % of Net Profit 17
  18. 18. SALIENT FEATURES1. The Model addresses the issue of food security at large.2. It is sustainable since Stone Age3. The poor family sustains, The village sustains, the economy of the country sustains.4. SADQA-E-JAARIAH( A social performance opportunity alsofor social investors as well )5.Also Profitable for Commercial Investors6.Interest free7. Saves the female goats 18
  19. 19. OTHER FEATURES1. 80% time must be invested in the Selection of the potential partners.2. Transparent Mudarbaha (Partnership) Agreement as an Islamic business model for investors.3. Farz Foundation’s Skilled Staff for the Operation, Monitoring, supervising and evaluation.4. Insurance of Each Animal (Theft and Death)5. Tagging for, Identification of animals and Breed management6. Full Time availability of an experienced Veterinary Doctor for care and growth of the animals.7. Capacity Building of the partners for the enhancement of their nurturing ability.8. Monthly visit of the Social Officer (Field Officer) under the supervision of Branch Manager and Monitoring Department.9. Farz Foundation provides health care facility to the partners and their family .10. Farz Foundation also provides the other services to the partners like “Farz 19 Committee” (participatory rotating saving) to build their assets.
  20. 20. BRANCH STRUCTURE Social Center Manger (BM) Farm Veterinary Doctor Manager/accounta nt Social officer Social officer Social officer Social Officer Bai- Social officer (Mudharbha) (Mudharbha) (Mudharbha) Salam (Murabaha) Office boyThe social officer , farm manager along with the BM must be livestock experts 20
  21. 21. CLUSTER STRUCTURE At Community Level GL GL GLM M M M M M M M M M M M GL GLM M M M CM M M M M First Islamic Microfinance in Pakistan 21
  22. 22. DELIVERY PROCESSStep • MOBILIZATION + TRAINING 1Step • COMMUNITY MEETING CONDUCTED BY SOCIAL OFFICER (SO) 2Step • TO FINALIZE THE CLUSTER MANAGER AND GROUP LEADERS 3Step • HOME SCREENING 4Step • BUSINESS SCREENING 5Step • FINAL FORMATION MEETING 6Step • AGREEMENT AND DELIVERY OF GOATS 7 First Islamic Microfinance in Pakistan 22
  23. 23. MOBILIZATIONIdentification of potential partners within above mention target market. 23
  24. 24. 28
  25. 25. 29
  26. 26. 30
  27. 27. TAGGING & VACCINATION 31
  28. 28. AGREEMENT AND DELIVERY OF ANIMALS Transparency of Agreement 32
  29. 29. 33
  30. 30. DELIVERY OF ANIMALS First Islamic Microfinance in Pakistan 34
  31. 31. 35
  32. 32. PRODUCTION OF ONE FEMALE GOAT 36
  33. 33. OUTPUT BREAKUP Market Price Price (Out of Price (Out # of …Out ofMale/ # of…Out of 5 One of Five Age (Month) One Per GoatFemale Fe-male Goats Fe-male Fe-male Fe-male Goat Goat) Goat)Male 14 8 40 12,200 97,600 488,000Male 9 3 15 8,100 24,300 121,500Male 6 3 15 5,400 16,200 81,000Male 3 1 5 2,700 2,700 13,500Male 1 1 5 900 900 4,500Female 36 1 5 17,100 17,100 85,500Female 30 1 5 16,200 16,200 81,000Female 28 1 5 15,900 15,900 79,500Female 25 2 10 15,450 30,900 154,500Female 23 1 5 15,050 15,050 75,250Female 20 1 5 14,300 14,300 71,500Female 17 1 5 13,300 13,300 66,500Female 9 3 15 8,100 24,300 121,500Female 6 3 15 5,400 16,200 81,000Female 3 1 5 2,700 2,700 13,500Female 1 1 5 900 900 4,500Sub-Total 32 160 153,700 308,550 1,542,750Less. Mortality rate@ 30% 46,110 92,565 462,825Grand Total 107,590 215,985 1,079,925 37
  34. 34. PROJECT HIGHLIGHTSHeads Amount in PKR USD $ As per RateInvestment on animals (inclusive of PKR.primary expanses) 20,000,000 235,294 85Operational expanse (Adjustable) 21,455,821 252,421Total Funds Required During the Project 41,455,821 464,186Total Sale of Male Goats 97,600,000 1,148,235Total Sale of Fe-Male Goats 211,340,000 2,486,353Total Sale 308,940,000 3,634,588Mortality 92,682,000 1,090,376 30%Total sale After Mortality 216,258,000 2,544,212Farmer’s Share 108,129,000 1,272,106 50%Net Business Profit 108,129,000 1,272,106Actual Expanse 67,834,043 798,048Net Profit/Loss 40,294,957 474,058 50%Farz Share (out of Net Profit) 20,147,479 237,029 50%Investor Share (out of Net Profit) 20,147,479 237,029 50% First Islamic Microfinance in Pakistan 38
  35. 35. MONITORING & EVALUATION 39
  36. 36. 40
  37. 37. MONITORING & EVALUATION• Daily, weekly, monthly, quarterly and six monthly reports system.• Field visits of bottom to top Management.• Monthly Visit with 100% partners.• Social Performance Management. 41
  38. 38. FOOD SECURITY 42
  39. 39. 43
  40. 40. HEALTH CARE First Islamic Microfinance in Pakistan 44
  41. 41. HEALTH CARE• Organizing Eye care Camps• Health Awareness Program First Islamic Microfinance in Pakistan 45
  42. 42. 46
  43. 43. FUTURE PROTECTION PROGRAM 47
  44. 44. FUTURE PROTECTION PROGRAM Educational Support to Community children First Islamic Microfinance in Pakistan 48
  45. 45. QUESTION ? PLEASE 49
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