Farz Foundation and Pak-Qatar Family Takaful Limited (PQFTL), Pakistan-based organizations that provide microfinance services adhering to the principles of Islam, have signed a memorandum of understanding (MOU) for the provision of Shari’ah-compliant insurance facilities in Lahore. As per the agreement, in the event of the death of any borrower from Farz Foundation, PQFTL would pay the Qarz e Hasna (interest-free loan) back to Farz Foundation on behalf of the deceased member.
“In this way Farz Foundation will get back this amount from PQFTL for issuance to a new member thus the chain would remain intact and help more and more members to get out of the vicious circle of poverty”, according to a PQFTL press release. The share capital of PQFTL is PAR 840 million (USD 10 million). Financial information for Farz Foundation is not available.
By: Christine Chang, Research Associate
About Farz Foundation:
Farz Foundation is an Islamic microfinance institution based in Pakistan, which provides the facility of Qarz e Hasna (interest-free loans) to the poor. This money helps people enter into a contract of Murabaha (Islamic trading) or Ijara (Islamic leasing), allowing them to begin an income generating activity. Farz Foundation also provides health and education assistance to clients at no cost in deference to Sadqae Jariah (social responsibility). Farz Foundation does not report financial data to the Microfinance Information Exchange (MIX) Market.
About Pak-Qatar Family Takaful Limited (PQFTL):
Pak-Qatar Family Takaful Limited (PQFTL), established in 2006, is a Shari’ah-compliant company providing need-based Takaful solutions in Pakistan. These insurance products are provided to members with the surplus shared amongst its members. The company is registered and supervised by the Securities and Exchange Commission of Pakistan. The share capital of PQFTL is PAR 840 million (USD 10 million).
Additional Resources:
Pak Qatar Family Takaful Limited Press Release: PQFTL and Farz Foundation Sign Agreement!, March 31, 2010: http://www.pakqatar.com.pk/family/MediaRoom/EventsDetails.aspx?ID=14
MicroCapital Universe: Farz Foundation: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Farz+Foundation
MicroCapital Universe: Pak-Qatar Family Takaful Limited (PQFTL): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Pak-Qatar+Family+Takaful+Limited+%28PQFTL%29
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