On 5th August 2017, IMFN and Al-Huda Centre for Islamic Banking and Economics(CIBE) joined hands to provide Islamic microfinance practitioners an insight to the multiple products that are available and widely used over the world. The workshop was organized at Akhuwat Institute of Social Enterprise Management (AISEM).
The event began with Mr.Zubair Mughal, CEO Al-Huda CIBE, and his brief introduction to Islamic microfinance. He discussed in detail how Musharaka, Mudarabha and Murabaha were structured and implemented. He concluded that Murabaha was more commonly preferred amongst practitioners, while Mudarabha and Musharaka constituted only approximately 2% of the whole industry. Zubair Mughal explained the mechanisms of all the three products and why Murabaha is practiced more. He highlighted that majority Muslim countries practice only Islamic microfinance which is in line with Shariah rules and regulations instead of conventional microfinance. The role of the World Bank and the International Monetary Fund in spreading and funding Islamic microfinance globally has been very supportive. A Q&A round was conducted at the end of the session.
The next session invited Mr. Tariq Raza, Operations and Program Manager at Wasil Foundation, to present Wasil’s Sal’am model. He briefly described the Sal’am tool and how Wasil has been successful in implementing it throughout their clientele. He explained how they were able to mould this model according to the Pakistani agricultural market and used that as their main target. Tariq Raza shared multiple success stories of their clients spread all over the country.
The final session of the day called upon Mr. Shahid Safdar, Trainer at Akhuwat, to shed light on AKhuwat’s Qarz-e-Hasna model. Mr. Shahid led a very interactive session with the partcipants by engaging them in activities initially and calling upon them to share their knowledge regarding Islamic microfinance. The workshop concluded with a closing note by Mr. Syed Hussain Haider,Director AISEM and a certificate distribution ceremony.