Bank Alfalah, one of Pakistan’s largest commercial banks, has teamed up with Akhuwat, a leading name in interest-free microfinance, to establish a new center aimed at fostering economic empowerment for women across the country. This initiative, which will disburse micro loans worth PKR 25 million over the next three years, is designed to support over 1,000 women entrepreneurs, helping them build or expand their businesses without the burden of interest.
The collaboration marks a significant step in both organizations’ efforts to promote financial inclusion and sustainable development in Pakistan. Akhuwat has been at the forefront of alleviating poverty since its establishment in 2001, providing interest-free loans and comprehensive support to marginalized communities. With more than PKR 250 billion in loans distributed to over 4 million families, Akhuwat has long been a pioneer in the field of microfinance.
Through this strategic partnership, Bank Alfalah and Akhuwat are focusing on empowering women entrepreneurs, particularly those from underprivileged backgrounds, by providing them with interest-free micro loans under Akhuwat’s Qarz-e-Hasan model. The new center, located in Karachi, will act as a hub for women-led businesses, offering a variety of services to foster their growth.
The initiative aligns with several of the United Nations Sustainable Development Goals (SDGs), including SDG 5, which promotes gender equality, and SDG 8, which aims to promote sustained, inclusive, and sustainable economic growth. By offering financial assistance and support to women entrepreneurs, the project helps move towards a more inclusive financial ecosystem in Pakistan, where women can play a crucial role in the nation’s economic development.
Women will have access to micro loans ranging from PKR 30,000 to PKR 100,000 to help them either start new businesses or scale their existing ones. In addition to financial support, the center will provide key services such as financial literacy programs, networking opportunities, and social and civic guidance. These resources will help ensure that women entrepreneurs are well-equipped to navigate the business world and successfully manage their ventures.
What makes this partnership even more impactful is its focus on creating a sustainable model. The program will encourage prosperous borrowers to eventually become donors, thus perpetuating the cycle of economic empowerment. This not only helps women become financially independent but also cultivates a culture of mutual support and responsibility within the community.
Mehreen Ahmed, Group Head of Retail Banking at Bank Alfalah, emphasized the importance of women’s empowerment in the country’s socio-economic development. She stated, “Empowering women is key to Pakistan’s socio-economic development. This partnership with Akhuwat is a step towards creating an inclusive financial ecosystem where women entrepreneurs can thrive. Providing access to interest-free microfinance enables women to turn their ideas into sustainable businesses and contribute to the nation’s economy.”
Dr. Amjad Saqib, the Founder and Executive Director of Akhuwat, also highlighted the significance of this initiative. “Akhuwat’s mission has always been to foster a spirit of brotherhood and mutual support. With Bank Alfalah’s support, we are confident that this initiative will pave the way for women to gain financial independence and become active contributors to society,” he said.
This partnership between Bank Alfalah and Akhuwat represents a powerful collaboration that will not only benefit individual women entrepreneurs but also contribute to the broader goal of inclusive economic growth in Pakistan. By providing financial resources, business support, and a nurturing environment, this new center is set to create a lasting impact on the lives of many women, helping them unlock their potential and build successful businesses.
As the financial landscape in Pakistan continues to evolve, initiatives like this one offer hope for a more equitable and sustainable future. With the backing of Bank Alfalah and Akhuwat, women entrepreneurs now have a powerful platform to thrive and contribute to the country’s growing economy.