ISLAMABAD: The Pakistan Poverty Alleviation Fund (PPAF) has won the CIS Islamic Banking and Finance Award for the best contributor to the Islamic finance industry.

The award was conferred at a recent ceremony in Tashkent, Uzbekistan. PPAF won for successfully implementing its interest-free loan programme across Pakistan.

The CIS Islamic Banking and Finance Awards is an initiative of AlHuda CIBE that aims to recognise industry leaders and promote the concept of a sustainable economy.

Awards were presented in 15 to international Islamic microfinance institutions, takaful and leasing companies, banks and individuals for outstanding services to the Islamic microfinance industry.

PPAF’s interest-free loan programme was selected for extensive outreach and because it catered to the financial needs of poor and marginalised communities across Pakistan, with women being the major clients.

The design of the loan programme offered acceptability under Islamic microfinance in areas where religious sentiments are high and conventional microfinance is not welcome. In addition to being interest-free, the loans did not carry additional charges or fees such as for documentation, processing, voluntary, insurance, etc.

As part of the programme, trainings were organised for loan recipients for optimum utilisation of loans for expansion of their businesses.

The programme is a part of the government’s Ehsaas programme, a flagship initiative for poverty alleviation working under the ambit of the Poverty Alleviation and Social Safety Division. The award was received by Farid Sabir, the general manager of the programme.

PPAF said that as of April 2019, PPAF has provided 524,470 interest-free loans to the needful, 67pc being women.

Mr Sabir said that PPAF is implementing the interest-free loan programme through its 26 partner organisations in 442 union councils of 45 districts in Pakistan. As such, Rs12.9 billion has been disbursed with an average loan size of Rs24,596.

He said the programme has benefitted more than half a million people directly and three million indirectly.

Published in Dawn, May 17th, 2019