Bank Alfalah, one of the largest commercial banks in Pakistan, announces its partnership with Akhuwat to establish a new centre dedicated to fostering economic empowerment for over 1000 women through interest-free microfinance over the period of 3 years. This collaboration marks a significant milestone in both organisations’ commitment to financial inclusion and sustainable development in Pakistan.
Akhuwat, a pioneer in interest-free microfinance, has been at the forefront of poverty alleviation since its inception in 2001. Over the years, it has successfully disbursed over PKR 250 billion in interest-free loans, benefiting more than 4 million families across Pakistan. The organisation’s holistic approach extends beyond microfinance, encompassing education, healthcare, and social guidance to uplift marginalised communities.
Through this partnership, Bank Alfalah and Akhuwat aim to provide women entrepreneurs access to finance to become self-employed. The newly established centre in Karachi will serve as a hub for women-led businesses, offering interest-free loans under Akhuwat’s Qarz-e-Hasan model. This initiative aligns with the United Nations Sustainable Development Goals (SDGs), particularly in promoting gender equality (SDG 5) and economic growth (SDG 8).
The centre will offer various services, including financial literacy guidance, network opportunities through the development of a community support system, and social and civic guidance. Women from underprivileged backgrounds can access interest-free loans, starting from PKR 30,000 up to PKR 100,000 to start or expand their businesses. The initiative will also focus on building a sustainable model where prosperous borrowers can transition into donors, thus perpetuating the cycle of economic empowerment.
Mehreen Ahmed, Group Head Retail Banking at Bank Alfalah, stated: “Empowering women is key to Pakistan’s socio-economic development. This partnership with Akhuwat is a step towards creating an inclusive financial ecosystem where women entrepreneurs can thrive. Providing access to interest-free microfinance enables women to turn their ideas into sustainable businesses and contribute to the nation’s economy.”
Dr. Amjad Saqib, Founder and Executive Director of Akhuwat, remarked: “Akhuwat’s mission has always been to foster a spirit of brotherhood and mutual support. With Bank Alfalah’s support, we are confident that this initiative will pave the way for women to gain financial independence and become active contributors to society.”
Bank Alfalah remains committed to fostering financial inclusion, economic empowerment, and gender equality through its diverse initiatives. As the mandate holder for the Benazir Income Support Program (BISP), the Bank has facilitated financial access for 4.3 million women beneficiaries.
Aligned with SBP’s ‘Banking on Equality’ framework, the Bank has made significant strides in promoting financial literacy and economic participation, engaging over 2,600 farmers in Agriculture Finance Literacy Sessions and supporting SMEs with over Rs. 10.4 billion in disbursements under the SAAF scheme.
Additionally, the Revive and Rise microfinance programme has successfully disbursed PKR 200 million, benefiting 700 rural entrepreneurs, with 43% of recipients being women.
Bank Alfalah’s partnership with Akhuwat reaffirms its commitment to bridge financial gaps, support underserved communities, and drive sustainable economic growth across Pakistan.