Is it possible to provide qard hasan and achieve financial self-sustainability? The experience of Akhuwat in Pakistan

Ajaz Ahmed Khan, Muhammad Shakeel Ishaq, Joana Da Silva Afonso, Shahzad Akram

Research output: Chapter in Book/Report/Conference proceedingChapter (peer-reviewed)peer-review

Abstract

Akhuwat was established in 2001 in Pakistan in order to assist poor people to set up and develop their businesses by providing qard hasan or interest-free loans. It has expanded rapidly to become one of the largest Islamic microfinance organizations in the world. It has 500 branches spread throughout Pakistan with more than 567,000 active borrowers and an outstanding loans portfolio of almost US$77 m. Akhuwat has been very successful in maintaining high levels of on-time repayment, covering operating costs, and raising faith-based contributions from well-wishers as well as voluntary donations from borrowers.
Original languageEnglish
Title of host publicationIslamic Microfinance – Shari’ah Compliant and Sustainable?
EditorsM. Harper, A. A. Khan
Place of PublicationRugby, BK
PublisherPractical Action Publishing
Chapter2
Pages17-32
Number of pages16
ISBN (Electronic)9781780449555
ISBN (Print)9781853399565
DOIs
Publication statusPublished - 2017

Keywords

  • Pakistan
  • Akhuwat
  • qard hasan
  • zakat
  • sadaqah
  • faith
  • voluntary donations

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