Akhuwat is leading micro finance institution in Pakistan. It provide small amount of loans to poor without any interest and this quality make it differs from other micro finance institution. surprising fact is that its loan recovery is plus 90% without any service charges.

1. AKHUWAT MICROFINANCE
INSTITUTION
SWOT ANALYSIS
Prepared by: Iqra Nasir,
NED university of engineering and
technology

2. STRENGTH:
• Experience of more than
16 years.
• Trained workforce of more
than 200 employees.
• Equipped with fully
developed policies,
processes and systems.
• Support of more than 700
local donors.
• Registered with
Government of the Punjab
and Pakistan Center
Microfinance Network
(PMN).
• Enviable growth in last
eight years.
• Recovery rate of 99.85%.
• No discrimination on the
basis of religion, political
affiliation,
• caste, colour or ethnicity.
• No interest, profit or loan
processing fee is charged
from the borrower.

3. • Same culture for everyone
e.g. In contrast to many other MFIs, where CEOs and CFOs have
their own offices in plush buildings, everyone at Akhuwat sits on
the floor in a single room
• unlike other MFIs, Akhuwat employees volunteer 20 percent of
their time.
• The absence of interest also means the organization is
genuinely seen to help clients rather than fleece them—a
common perception of many other MFIs.
e.g. help in increasing of self esteem and it’s scale up
• Its use of mosques and churches reinforces this while breaking
down religious barriers and taboos, such as women and non-

4. • board of director including Dr.Amjad work voluntarily.
boarding, lodging, and travelling at their own, no remuneration
what so ever.
• cost of disbursement is low
• strict financial discipline,the most authenticated auditing
company,Fargousans audit AKHUWAT
• pro poor approach (make economically empowered)
• no selling and target pressure yet fastest growth rate

5. WEAKNESS
• They use mosque and churches for loan disbursement in which
women are hardly to going there , therefore it is hard to find out the
active women borrowers
• Without on ground office and latest equipment , it is hard to maintain
financial record of borrowers, lenders etc
• Its funds are donated,, from all manner of resources, rich and not so
rich and do not charge interest rate , what if the donors are not
providing finance so how can they maintain their operations and their
sustainability.

6. OPPOURTUNITIES:
• This model has strength to be replicated, around ten
replications
govt and other NGOs are partnering with AKHUWAT
e.g. Government of Punjab initiated its lagship program titled the
“Chief Minister Self Employment Scheme” followed by “Prime
Minister Interest Free Loans Scheme” which aimed to target the
most underprivileged segment of society
• People and organization are willing to help poor.Four out of 10
Pakistanis are living in acute poverty according to the official
Multidimensional Poverty Index (MPI),so it provide a platform to
both

8. • High population of youth
• More than 50% population are women
• To work for religious minorities
• Use of technology for keeping the record of clients, loan portfolio,
record of borrows, demographic detail of them, branch wise detail
and for monitoring and evaluation.
• According to state bank of pak, there are 25 to 30 million active
borrowers here who donot want to go convention MFI due to riba

9. THREATS
• MFBs are borrowing from diverse set of lenders to meet their funding
needs where as MFIs are finding it hard to obtain funds from
commercial lenders because they want to multiply their profit
• The major caused of inflation is raising the cost of dollar, and
recently Donald trump announced that all military aid will be stop
which is $ 255million , means the budget of other sector will be cut
down and give it to military ,result in end of subsides offered by
government and cause raising of price of every product whether it is
raw material or not, means people need more money to survive and
increase the demand of loans causes increase in supply and demand
gap

10. • In cpec , china investment is around 60 billion dollar , here in
Pakistan in which it built here economic hubs where companies
started to manufacture product in cheaper cost , causes small
enterprise become to collapse. In order to resist it, they need
more money to start their business in larger scale , again need
more loans