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