ISLAMABAD: Pakistan Poverty Alleviation Fund (PPAF) has won the prestigious CIS Islamic Banking and Finance award for being the best contributor to the Islamic Finance Industry in a ceremony held recently in Tashkent, Uzbekistan.
According to the announcement made here on Thursday, the PPAF was selected for implementing the Interest-Free Loan Programme across Pakistan. The CIS Islamic Banking and Finance Awards is a signature initiative of Al-Huda CIBE aimed to recognize the industry leaders and to promote the concept of a sustainable economy.
The awards were presented in 15 categories to international Islamic microfinance institutions, Takaful and leasing companies, banks, and individuals for their outstanding services to the Islamic Microfinance Industry.
PPAF’s Interest-Free Loan Programme was selected for its extensive outreach and its unique feature of catering to the financial needs of the poor and marginalized communities across Pakistan with women being the major clients. The design of the loan program offers acceptability under Islamic Microfinance in areas where religious sentiments are high and conventional microfinance is not welcomed. The loans besides being interest-free do not carry any additional charge/fee i.e. documentation, processing, voluntary, insurance, etc.
Dr. Irfan Yusuf Shami, Ambassador of the Islamic Republic of Pakistan to Uzbekistan, as the chief guest, inaugurated the forum. He spoke of Islamic finance is the need of the time and Central Asia’s need to observe the potential of Islamic banking and finance and the value it can bring to international banking and finance. The ambassador said that investing in Islamic banking and finance will lead to greater foreign investments, promising enhanced global connectivity, improved job creation, socio-economic development, and poverty alleviation. This transcending Islamic financial sector may also create genuine global opportunities for Uzbekistan. Dr. Shami also said that he vigorously endorsed Pakistan’s ambassadorial role in promoting meaningful contributions to the advancement of Islamic finance at all levels, paving the way towards a better community and making a difference in the world.
While receiving the Award, Mr. Farid Sabir, General Manager, Interest Free Loan Programme, PPAF shared that as of April 2019, PPAF has provided 524,470 interest free loans to the needful, 67% being women clients, the said that PPAF is implementing the IFL through its 26 partner organizations in 442 Union Councils of 45 districts of Pakistan as such an amount of Rs12.9 billion has been disbursed with the average loan size of Rs24, 596. The program has benefitted more than half a million directly while 3 million people are benefited indirectly from the IFL program. He also said that the Interest-Free Loan Programme is a tool of financial inclusion and poverty alleviation for the poor and is an integral part of the graduation approach of the PPAF.