press release on pakistan and sudan leading in islamic microfinance industry

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  • 8/12/2019 Press Release on Pakistan and Sudan Leading in Islamic Microfinance Industry

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    CENTRE OF ISLAMICBANKING & ECONOMICS

    Head Office: 160 B Ahmed Block, Ph: +92-42-35913096-8 E-mail: [email protected]

    New Garden Town Lahore, Pakistan. Fax: +92 -42-35913056 Website: www.alhudacibe.com

    Press ReleasePakistan and Sudan Leading in Islamic Microfinance Industry

    Active Client Base of Islamic Microfinance have exceeded 2 Million: Zubair Mughal12th May, 14

    (Islamabad) The demand of Islamic microfinance is rapidly increasing in order to serve poverty alleviationand social development, Its active client size have exceeded to 2 million now from which more than700,000 belong to Sudan and more than 400,000 clients of Islamic Microfinance Institutions are fromPakistan. On the other hand, Yemen, Indonesia, and Bangladesh also have a good number of clientage andIslamic Microfinance has satisfactory demand in Morocco, Senegal, Nigeria, and Tunisia. This was stated byMr. Muhammad Zubair Mughal, Chief Executive Officer, AlHuda Center of Islamic Banking and Economic(CIBE) in addressing to International Conference on Islamic Microfinance Business Model that was jointly

    organized by IRTI Islamic Development Bank and International Islamic university Islamabad. He further

    added that Islamic microfinance has been successfully utilized for poverty alleviation. Both Muslim and nonMuslim are taking equal befit from this role model.

    He said that in a few countries including e.g Nigeria, India, Tanzania, and Ethiopia, Islamic microfinance isbeing utilized as only for Muslims communities but this is quite wrong, Islamic microfinance should be usedas a business model not as religious intervention, Islamic Microfinance is a system which can be utilized andoperated by all the segment of society without any religious discrimination. Yes, there is an extra benefitfor Muslims that it is in accordance with their religious belief but for non-Muslim it is an ideal financial

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  • 8/12/2019 Press Release on Pakistan and Sudan Leading in Islamic Microfinance Industry

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    CENTRE OF ISLAMICBANKING & ECONOMICS

    Head Office: 160 B Ahmed Block, Ph: +92-42-35913096-8 E-mail: [email protected]

    New Garden Town Lahore, Pakistan. Fax: +92 -42-35913056 Website: www.alhudacibe.com

    instrument for poverty alleviation and social uplifting.

    He added that there are lots of challenges faced by Islamic microfinance i.e. squeezed volume of

    organizations, lack of technical expertise and quality HR, lack of standardization of the products etc but themain hurdle is lack of funds for Islamic microfinance institutions, this is why the growth is not so constantof this influential system but It can be rectified with venture capital, Social Sukuk, Centralized Zakat System,revitalization of Waqf concept, Islamic banking charity to be used in Islamic microfinance, Crowed fundingplatform and create liaison between Islamic banking and Islamic microfinance Institutions.

    He said it is quite wrong thinking that Islamic microfinance is a complicated financial product; actually It caneasily be implemented in any country in any type of Islamic Microfinance Institutions. All Islamicmicrofinance products whether that is Grameen Model, Village Banking Model, Credit union model,

    Cooperative Model or self help group etc are all in line with models of microfinance credit. He further

    added that before using Islamic microfinance in Conventional microfinance system, minor changes are tobe done in the system i.e. use of Islamic microfinance products instead of interest based products, Islamicinsurance (Takaful) instead of Conventional insurance, and the Shariah method of savings and investmentetc. #

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