An amount of Rs 10.5 million has been distributed among 1400 poor families across Rawalpindi, Chakwal and AJK under the 'Muslim Aid Islamic Microfinance Project'. This was stated by Muslim Aid Programme Manager, Microfinance and Livelihood, Syed Moeezuddin Kakakhail during a cheque disbursement ceremony held here in Rawalpindi on Friday.

He said that Muslim Aid has started the use of financing techniques in development and providing Islamic microfinance. The organisation has provided interest-free microloans ranging from PKR 10,000 to PKR 33,000 to encourage entrepreneurship and get sustainability. Muslim Aid, is helping some of the poorest communities and those worst affected by the recession to become economically self-sufficient by providing interest-free loans, he said.

While explaining the Muslim Aid Islamic Microfinance, he said that our project refrain borrowers from a debt trap and make them self-sufficient. Our micro-financing is not socially destructive, as it is purely based on interest-free Islamic values. We are using our financing techniques in development and uplift of the poor.

Syed Moeezuddin said that In Pakistan most microfinance schemes charge high rates of interest which is religiously unacceptable for Muslims, but also makes them unstable. “Our Sarah-compliant microfinance project not only provides the capital to help people set up their own businesses but also provides essential training and support to ensure the success of these ventures.”

“We are currently working with Akhuwat to provide loans to vulnerable people across Rawalpindi, Chakwal and AJK, but are looking to expand to other parts of the country in the near future. We are very proud that over 25 per cent of our beneficiaries of this project are women and many are widows who are now supporting their entire family through their businesses, “he said.

Programme Officer, Raja Shahid Nawaz said that in a time of economic uncertainty Muslim Aid has shown that appropriate finance solutions can have a life-changing effect on some of the poorest people of our society. Our Islamic microfinance project is benefitting men and women, young and old helping them to overcome poverty, he added.