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

1. The First Shariah Certified Islamic
Micro-Finance Institute
of Pakistan
FARZ METHODOLOGY
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2. VISION
“To bring social change
through poverty alleviation
by improving productivity
and capacity of partners
and staff ”
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3. MISSION
Empowering the poor through
innovative products and diverse
business opportunities, by integrating
social performance
focused microfinance with collaborative
community health and
education partnerships.
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4. AN INTEGRATED APPROACH
Financial
Service
Health
Business &
Environmental
education
TARGET MARKET
First Islamic Microfinance in Pakistan 4

5. PRODUCT
MUDHARBHA
THROUGH
LIVESTOCK
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6. TARGET MARKET
• Geographical
– Rural Area
• Demographical
– Male/Female/Family/
– Age Group
• 25 to 50 years
– Income level
• Moderate poor
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7. HALAL KAROBAR (BUSINESS)
Halal Investment in Livestock
Business Through Islamic
Microfinance

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. 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. MODE OF BUSINESS
Mudarbah, as profit and loss share accordingly.

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. ROLE OF FARMER
• Nourishing
• Grazing/feeding
• Breeding
• Provide shelter for animals
• Care & Growth

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. RISK MITIGATION VEHICLE
Support from partners
HALAL KAROBAR PROJECT
• Capital
Investor • Advocacy
Provincial Ministry • Capacity Building
• Medical Assistance
of Livestock.
University of veterinary • Human Resource
• Awareness Services
& Animals Sciences LHR. • Research
Lahore Meat • Standards for Halal ,Health & environment
• Purchasing Animals from FF
Corporation
• Support in Health
Responsible Giving • Scarcity
Pools • And Emergency
• Theft
Takaful of Animal • Death
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15. FEATURES OF THE PRODUCT
FEATURES
Product Name BHI-WALI --1
Objective Breeding
Size Unit of 6 Goats for one poor Family ( 5 Female Goats + 1 Male Goat)
Age of Animal 10 to 12 month
Kind Desi /Beetal/Barbani/Kamori/Rajanpuri
Size of Investment PKR: 100,000/ Unit
Period 42 to 48 month
Modality of partnership 50%/50% at reproduced Goats
with poor Family
Modality of partnership Investor gain 50% of the net profit
with Investor
Farz Gain 50% of net profit
The 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.
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16. FEATURES OF THE PRODUCT
FEATURES
Product Name BHI-WALI -2
Objective Qurbani Animals Production
Size 5 Male Goats for one Poor Family
Age of Animal 6 Month
Kind Beetal, Rajan Puri, Desi
Size of Investment PKR: 100,000/ Unit
Period 10 to 12 Month
Modality of partnership 34 % of Net Profit
with poor Family
Modality of partnership 33 % of Net Profit
with Investor
Farz Share 33 % of Net Profit
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17. FEATURES OF THE PRODUCT
FEATURES
Product Name BHI-WALI -3
Objective Meat Production
Size 10 Male Goats for one Poor Family
Age of Animal 3 Month
Kind Taidy
Size of Investment PKR: 100,000/ Unit
Period 5 to 6 Month
Modality of partnership 34 % of Net Profit
with poor Family
Modality of partnership 33 % of Net Profit
with Investor
Farz Share 33 % of Net Profit
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18. SALIENT FEATURES
1. The Model addresses the issue of food security at large.
2. It is sustainable since Stone Age
3. The poor family sustains, The village sustains,
the economy of the country sustains.
4. SADQA-E-JAARIAH( A social performance opportunity also
for social investors as well )
5.Also Profitable for Commercial Investors
6.Interest free
7. Saves the female goats
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19. OTHER FEATURES
1. 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 management
6. 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
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Committee” (participatory rotating saving) to build their assets.

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 boy
The social officer , farm manager along with the BM must be livestock experts
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21. CLUSTER STRUCTURE
At Community Level
GL GL GL
M M M M M M
M M M M M M
GL GL
M M M M
CM
M M M M
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22. DELIVERY PROCESS
Step • MOBILIZATION + TRAINING
1
Step • COMMUNITY MEETING CONDUCTED BY SOCIAL OFFICER (SO)
2
Step • TO FINALIZE THE CLUSTER MANAGER AND GROUP LEADERS
3
Step • HOME SCREENING
4
Step • BUSINESS SCREENING
5
Step • FINAL FORMATION MEETING
6
Step • AGREEMENT AND DELIVERY OF GOATS
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First Islamic Microfinance in Pakistan 22

23. MOBILIZATION
Identification of potential partners within above
mention target market.
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24. 28

25. 29

26. 30

27. TAGGING & VACCINATION
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28. AGREEMENT AND DELIVERY OF
ANIMALS
Transparency of
Agreement
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29. 33

30. DELIVERY OF ANIMALS
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31. 35

32. PRODUCTION OF ONE FEMALE GOAT
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33. OUTPUT BREAKUP
Market Price
Price (Out of Price (Out
# of …Out of
Male/ # of…Out of 5 One of Five
Age (Month) One Per Goat
Female Fe-male Goats Fe-male Fe-male
Fe-male Goat
Goat) Goat)
Male 14 8 40 12,200 97,600 488,000
Male 9 3 15 8,100 24,300 121,500
Male 6 3 15 5,400 16,200 81,000
Male 3 1 5 2,700 2,700 13,500
Male 1 1 5 900 900 4,500
Female 36 1 5 17,100 17,100 85,500
Female 30 1 5 16,200 16,200 81,000
Female 28 1 5 15,900 15,900 79,500
Female 25 2 10 15,450 30,900 154,500
Female 23 1 5 15,050 15,050 75,250
Female 20 1 5 14,300 14,300 71,500
Female 17 1 5 13,300 13,300 66,500
Female 9 3 15 8,100 24,300 121,500
Female 6 3 15 5,400 16,200 81,000
Female 3 1 5 2,700 2,700 13,500
Female 1 1 5 900 900 4,500
Sub-Total 32 160 153,700 308,550 1,542,750
Less. Mortality rate@ 30% 46,110 92,565 462,825
Grand Total 107,590 215,985 1,079,925 37

34. PROJECT HIGHLIGHTS
Heads Amount in PKR USD $ As per Rate
Investment on animals (inclusive of PKR.
primary expanses) 20,000,000 235,294 85
Operational expanse (Adjustable) 21,455,821 252,421
Total Funds Required During the Project 41,455,821 464,186
Total Sale of Male Goats 97,600,000 1,148,235
Total Sale of Fe-Male Goats 211,340,000 2,486,353
Total Sale 308,940,000 3,634,588
Mortality 92,682,000 1,090,376 30%
Total sale After Mortality 216,258,000 2,544,212
Farmer’s Share 108,129,000 1,272,106 50%
Net Business Profit 108,129,000 1,272,106
Actual Expanse 67,834,043 798,048
Net 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%
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35. MONITORING &
EVALUATION
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36. 40

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.
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38. FOOD SECURITY
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40. HEALTH CARE
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41. HEALTH CARE
• Organizing Eye care Camps
• Health Awareness Program
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43. FUTURE PROTECTION
PROGRAM
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44. FUTURE PROTECTION PROGRAM
Educational Support to Community children
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45. QUESTION ? PLEASE
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