1. Microfinance
Microfinance is defined as financial services for the poor
and low income clients offered by different types of
service providers
2. Akhuwat
Akhuwat is Pakistan’s largest interest free microfinance
organization which envisions a poverty free society built
on the principles of compassion and mutual support.
3. History:
In 2001 the idea of Akhuwat was presented before a
group of friends at the Lahore Gymkhana. During the
conversation, charging of exorbitant interest rates on
microfinance programs aimed at poverty alleviation was
being criticized. The idea of initiating an interest free
successful microfinance program was brought forth as a
challenge and at that point, no one present foresaw the
shape this experiment would eventually take. One of
the friends pledged a donation of ten thousand rupees,
while another friend, Dr. Amjad Saqib, took it upon
himself to utilize that donation as an interest free loan.
4. Vision:
A poverty free society built on the principles of
compassion and equity.
About Akhuwat:
Akhuwat was established in 2001 with the objective of
providing interest free microfinance to the poor so as to
enhance their standard of living.
5. GUIDING PRINCIPLES OF
AKHUWAT
Interest-free microcredit: Akhuwat provides the
economically poor with interest free loans so that they
may acquire a self-sustaining livelihood. It also provides
the skills and support they need to actualize their full
potential and abilities
6. Spirit of volunteerism:
The spirit of volunteerism that Akhuwat’s management
and its team members exhibit is indicative of the
success Akhuwat achieved within a short span of time.
7. Reliance on philanthropy:
Since its inception Akhuwat has solely relied upon the
philanthropists in extending its services to the community.
However, in order to fulfill the increased credit needs of its
ever-increasing clientele it is now willing to work with the
international donors as well.
8. Linkages with Mosque and
Church:
An important and novel idea associated with individual
loans is the use of the local mosque/church
infrastructure as the center for loan disbursement and
as an avenue for community participation.
9. Credit Plus approach:
Akhuwat has employed a credit plus approach by
introducing the idea of social guidance for its credit
beneficiaries. The purpose of this approach is to help
borrowers flourish their small enterprises so that they
can lead socially healthier lives than before.
10. Organizational Structure
Akhuwat is governed by a Board of seventeen members,
consisting of philanthropists.
The Board meets quarterly to review operations and
take policy decisions. Another salient responsibility of
the board is to provide marketing services for Akhuwat
and mobilize funds for loans. An Executive Committee
consisting of three members meets every month for
reviewing all administrative and operational issues of
the organization.
13. Akhuwat Islamic Microfinance
(AIM)
Akhuwat Islamic Microfinance is the core program of Akhuwat through which
it carries out the provision of interest-free microcredit to the poor. Through
AIM, 4.5 million interest-free loans have been disbursed to 3.5 million
families across 800 cities of Pakistan. As of 2020, the total number of loans
Akhuwat has disbursed amounts to PKR 128 billion (US$798 million).
Akhuwat's loan portfolio consists of 58% of male borrowers and 42% female
borrowers. The most common type of loan offered by Akhuwat is the Family
Enterprise Loan which comprises 92% of Akhuwat's loan portfolio. The loan is
intended for the entire family that is involved during the process of
appraisal and lending. However, each entrepreneurial business is undertaken
by a member of the household who has the required expertise needed to
initiate the business. In case a borrower is not equipped with the necessary
skills to start a particular business, he is linked with another borrower who
will guide and facilitate them until they are sufficiently trained. The Family
Enterprise Loan is designed to strengthen the family unit and thus seeks to
make the enterprise a family venture instead of an individual effort. Other
loan products include loans for housing, education, health, marriage, and
agricultural loans given to farmers. Liberation loans are given to those who
have borrowed money from money lenders at extremely high interest rates
so that they may be able to come out of an irreversible cycle of debt.
14. Akhuwat Education Services
(AES)
Akhuwat has been working to improve the access to
education to those who have been deprived of this
fundamental right due to various financial constraints.
AES has a network of over 300 schools in collaboration
with the Public School Support Program (PSSP) by the
Government of Punjab and 4 institutions providing
higher education. The vision of this program is to create
a peaceful and economically vibrant, poverty-free
society; by equipping children and young people with
critical thinking skills, respect for self and others,
integrity, and compassion through education
15. Akhuwat Jugnu School
Akhuwat Jugnu School is a pre-primary
program, situated in Akhuwat College for
Women, Chakwal. An empathy-based
curriculum is used in the school and the
children are taught to co-exist peacefully
16. Akhuwat College Kasur (ACK)
Established in 2015, Akhuwat College is a residential
college that houses and educates young students
selected on merit from all provinces of Pakistan
besides Gilgit Baltistan and Azad Kashmir. It has a 15%
quota for each province to ensure equal representation.
The aim of the college is to provide young people with
quality education and also to focus on cultivating their
talents, inspiring a deeper sense of ethics, and
inculcating the values of discipline, hard work, and
volunteerism. The idea behind ACK charging no fee from
students is that after students graduate and eventually
reach a successful position in their life they will remain
attached to the cause of Akhuwat and give back to
society hence creating a cycle of reciprocity.
17. Akhuwat College for Women
Akhuwat College for Women is located in Chakwal and is
an educational institute and residential facility housing
women from Pakistan. Young women receive merit-
based admissions with reserved seats from different
provinces and administrative regions of Pakistan
18. Akhuwat College/University
Located in Kasur, Akhuwat University is currently under
construction to become a fee-free university where
students may pay their fees according to their means.
Through scholarships and interest-free loans, equal access
to quality education is given importance.
Akhuwat Faisalabad Institute of Research, Science and
Technology
Established in 2015, at Akhuwat Faisalabad Institute of
Research, Science, and Technology (FIRST), students are
offered four-year undergraduate degrees in the field of
science, with a special focus on Biotechnology. Akhuwat-
FIRST provides scholarships to all students from Pakistan
enrolled in the university.
19. Public School Support Program
Through the Public-School Support Program, Akhuwat
collaborated with the Government of Punjab and
adopted over 300 public primary schools in six districts
of Punjab, where it provides education and improved
academic facilities. Nearly 50,000 students are enrolled
including both boys and girls.
20. Narayan Jagannath Vaidya (NJV), Karachi
The Narayan Jagannath Vaidya (NJV) School is located in
Karachi. In 2015, the Sindh government decided to revive it
to its original state both physically and academically by
working alongside Akhuwat in maintaining the quality of
education free of charge. Students from low-income
backgrounds attend NJV and have access to develop their
academic and professional abilities. This project was
undertaken to renovate the school facilities such as
functional bathrooms, clean water, functioning doors,
library, playgrounds, and IT facilities. Akhuwat NJV team,
under the guidance of Mr. Nazir Tunio, Director Akhuwat
Sindh, aims to make it one of the best institutions in the
province of Sindh
21. Akhuwat Clothes Bank (ACB)
Akhuwat Clothes Bank collects, sorts, and cleans
donated clothes and gifts and shares them with low-
income families. The clothes are packed and gifted to
poor families through stalls set up outside religious
centers, branches of Akhuwat, and in low-income
neighborhoods. Established in 2013, the Clothes Bank
also employs and trains members of the transgender
community to carry out various responsibilities and
tasks. As of 2020, 2.5 million clothing items, home
textiles, and furniture have been distributed throughout
Pakistan through this program.
22. Akhuwat KhwajaSira Support Program (AKSP)
Since 2012, The Akhuwat Khawajasira Support Program
has registered members of the transgender community
who are over the age of forty. These members are
supported through direct financial assistance, health
services, psychological support, and community building
interventions.
23. Kasur Mawakhat Program (KMP)
The Kasur Mawakhat Program (KMP) is a participatory rural
development initiative that mobilizes and organizes local
communities to lead their own development projects in
villages. Started in 2014, this program has been
implemented in seven villages in District Kasur. This project
is jointly spearheaded by Dunya Foundation, headed by
Mian Amir Mehmood, and Akhuwat. The Kasur Mawakhat
Program rests on two core practices; social mobilization
and development interventions identified by the people. As
part of this program, interest-free loans were provided to
the people of these villages who used them to start
businesses or invested in their farms for agriculture. Solar
tube wells were installed in the area and over 14,000 trees
were also planted in the villages through this holistic rural
development model inspired by the Agha Khan Rural
Support Program founded by Shoaib Sultan Khan under the
guidance of late Akhtar Hamid Khan.
