Bank Alfalah and Akhuwat team up to provide interest-free micro loans to women

This new collaboration aims to provide women entrepreneurs with the financial resources they need to become self-employed
 

Bank Alfalah and Akhuwat to empower women through microfinance loans  

Bank Alfalah, one of Pakistan’s leading commercial banks, has teamed up with Akhuwat to establish a new centre dedicated to empowering over 1,000 women through interest-free microfinance loans, totaling PKR 25 million over the next three years. This partnership represents a significant step forward in both organizations' ongoing efforts to promote financial inclusion and sustainable development in Pakistan.

Akhuwat, a trailblazer in interest-free microfinance, has been instrumental in poverty alleviation since its inception in 2001. Over the years, it has disbursed more than PKR 250 billion in interest-free loans, benefiting over 4 million families across the country. Akhuwat’s comprehensive approach goes beyond microfinance, offering education, healthcare, and social support to uplift marginalized communities.

This new collaboration aims to provide women entrepreneurs with the financial resources they need to become self-employed. The newly established centre in Karachi will serve as a hub for women-led businesses, offering interest-free loans under Akhuwat’s Qarz-e-Hasan model.

 

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Aligned with the United Nations Sustainable Development Goals (SDGs), particularly SDG 5 (Gender Equality) and SDG 8 (Decent Work and Economic Growth), this initiative will help empower women and foster economic growth.

The centre will offer a range of services, including financial literacy training, networking opportunities, and social and civic guidance. Women from underprivileged backgrounds will be able to access interest-free loans ranging from PKR 30,000 to PKR 100,000 to start or grow their businesses.

A key focus of the initiative is creating a sustainable model where prosperous borrowers can eventually become donors, ensuring the continued cycle of economic empowerment.

Mehreen Ahmed, Group Head of Retail Banking at Bank Alfalah, shared, “Empowering women is essential for Pakistan’s socio-economic development. This partnership with Akhuwat represents a significant step towards creating an inclusive financial ecosystem where women entrepreneurs can thrive. By providing access to interest-free microfinance, we enable women to turn their ideas into sustainable businesses and contribute to the national economy.”

Dr. Amjad Saqib, Founder and Executive Director of Akhuwat, added, “Akhuwat’s mission has always been to foster a spirit of brotherhood and mutual support. With the support of Bank Alfalah, we are confident that this initiative will help women gain financial independence and become active contributors to society.”

 

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Bank Alfalah continues to advance financial inclusion, economic empowerment, and gender equality through its various initiatives. As the mandate holder for the Benazir Income Support Program (BISP), the bank has provided financial access to 4.3 million women beneficiaries.

In line with the State Bank of Pakistan’s ‘Banking on Equality’ framework, Bank Alfalah has made notable progress in promoting financial literacy and economic participation. The bank has engaged over 2,600 farmers in Agriculture Finance Literacy Sessions and supported SMEs with over PKR 10.4 billion in disbursements under the SAAF scheme.

Furthermore, the bank’s Revive and Rise microfinance program has disbursed PKR 200 million, benefiting 700 rural entrepreneurs, 43% of whom are women.

This partnership between Bank Alfalah and Akhuwat reaffirms the bank’s commitment to bridging financial gaps, supporting underserved communities, and driving sustainable economic growth across Pakistan.

Source: Pro Pakistani

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