Bank Alfalah collaborates with Akhuwat to disburse microloans

KARACHI: Bank Alfalah has announced its partnership with Akhuwat to establish a new centre dedicated to fostering economic empowerment for over 1,000 women through interest-free microfinance over the period of three years, a statement said on Monday.

Through this partnership, Bank Alfalah and Akhuwat aim to provide women entrepreneurs access to finance 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.

The center will offer various services, including financial literacy guidance, network opportunities through the development of a community support system, and social and civic guidance. Women from underprivileged backgrounds can access interest-free loans, starting from Rs30,000 up to Rs100,000 to start or expand their businesses. The initiative will also focus on building a sustainable model where prosperous borrowers can transition into donors, thus perpetuating the cycle of economic empowerment.

Akhuwat, a pioneer in interest-free microfinance, has been at the forefront of poverty alleviation since its inception in 2001. Over the years, it has successfully approved over Rs250 billion in interest-free loans, benefiting more than four million families across Pakistan. The organisation’s holistic approach extends beyond microfinance, encompassing education, healthcare and social guidance to uplift marginalised communities. Group Head of Retail Banking at Bank Alfalah Mehreen Ahmed said: “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.”