MICROFINANCE EVENT: Al Huda to Conduct Training Workshop in Islamabad on Islamic Microfinance

TRAINING WORKSHOP ON ISLAMIC MICROFINANCE

MARCH 7-8, 2008, STATE BANK OF PAKISTAN, ISLAMABAD, PAKISTAN

The Al Huda Center of Islamic Banking and Economics (Al Huda CIBE), an institute based in Lahore and comprised of Pakistani academics and practitioners in the field of Islamic finance, will hold a two-day workshop introducing the basics of Islamic microfinance and small and medium enterprises (SMEs), as well as presenting updated practices in the field. Convening at the State Bank of Pakistan (SBP) in Islamabad, the seminar will cover issues specific to Islam, such as the role of the takaful in microfinance—a form of mutual insurance entailing the pooling of a group’s monies into one common fund which is managed according to shariah law—as well as the interest-free loaning mechanism known as musharaka which is the joint participation of the investor and borrower in the profit and loss of an investment rather than a conventional loan with a risk-determined interest rate. The workshop will also delve into the SBP’s plans for the future development of Islamic finance in Pakistan as well as outreach and development associated with Islamic SMEs and microfinance. The SBP issued new guidelines for Islamic microfinance services within Pakistan in late 2007, as reported by MicroCapital.

Speakers at the workshop will include Muhammad Khaleequzzaman (Head of the Department of Islamic Banking at the International Islamic University, Islamabad), Dr. Muhammad Amjad Saqib (Executive Director of Akhuwat), and Dr. Nasim Shah Shirazi (Director of the International Institute of Islamic Economics at the International Islamic University, Islamabad).

Akhuwat, in which Dr. Muhammad Amjad Saqib serves as the Executive Director, is a Lahore-based non-governmental organization (NGO) providing Islamic microfinance services to the poor and following the Self Help Group (SHG) approach—a union of individuals, usually connected by geographical location, who organize to take advantage of the financial services that can be utilized from the members’ collective assets. Established in 2001, Akhuwat also offers credit services for the poor who are unable to organize themselves in SHGs and aid in education, health, and legal matters, as stated on their web site. Akhuwat, which reports to the MIX Market, the microfinance information clearinghouse, had 2006 total assets of USD 814,000 and a loan portfolio of USD 637,000. The NGO reached over six thousand borrowers in 2006 and reports through its web site that it has a 99% recovery rate. The MIX Market records a return on assets (ROA) of negative 3.64 percent, a debt to equity ratio of 1.84 percent, and an operational self-sufficiency (OSS) of 73 percent. No outside ratings are presented on the MIX Market or on Akhuwat’s web site.

The workshop will be held during the hours of 9 AM to 5 PM. The course fee is INR 6,000, or USD 150, and payment must be made prior to commencement of the session. Fees include lunch, training materials, refreshments, and a completion certificate.

Al Huda CIBE also offers corporate development, training, publications, and research in the field of Islamic finance. The center can be contacted by e-mail at info@alhudacibe.com, or by phone at +92-42-5858990.

By Anthony Busch, Research Assistant

Additional Resources:

Akhuwat: Home, About, MIX Market, Process

Al Huda Center of Islamic Banking and Economics: Home, About, Workshop

International Islamic University, Islamabad: Home

MicroCapital article, September 19, 2007: “State Bank of Pakistan (SBP) Issues Guidelines for Islamic Microfinance Services”

MIX Market: Home

OANDA: FXConverter

State Bank of Pakistan: Home

Similar Posts: