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Dr Muhammad Amjad Saqib, founder of world’s largest interest-free micro-finance programme Akhuwat in Pakistan, has been nominated for the Nobel Peace Prize for his humanitarian work on poverty alleviation and providing interest-free loans to thousands of deserving people. A total of 343 candidates -- 251 individuals and 92 organisations -- from around the world have been nominated for the Nobel Peace Prize for 2022. Dr Saqib, who is known for his philanthropic work, was one of the five recipients of the Ramon Magsaysay Award, named after a Filipino president who was killed in a plane crash for his first-of-its-kind interest-free and collateral-free microfinance programme that has helped millions of poor families. Established in 2001 with mere $100, Akhuwat has distributed around $1 billion among 5 million deserving families. Dr Saqib’s professional expertise and employment history include public management, poverty alleviation, social development, governance and educational reforms in Pakistan.
Dr Saqib, who is chairman of Akhuwat, is a prolific writer and has authored nine books. Dr Saqib last visited Qatar in 2018. In an online interview with Qatar Tribune, Dr Saqib spoke about Akhuwat and his feelings on being nominated for the Nobel Peace Prize. Excerpts:
How do you feel about your nomination for the Nobel Peace Prize?
I would like to start by congratulating every citizen of Pakistan. This nomination is not for me but for Pakistan and for every single person all over the world who believes that poverty can be eliminated. Every virtuous thing attributed to us is because of Pakistan. Alhamdulillah, I am very grateful to Allah Almighty for this honour. This has allowed the international community to see Pakistan in a positive light. I am grateful and humbled that we could bring Pakistan this honour and were able to do something for the underprivileged of Pakistan.
However, where I am highly grateful, I would also like to mention that whatever Akhuwat has done so far was never done for any worldly reward. Our sole purpose was to please our Creator, to have something to offer when we are presented before Him. I believe a kind deed is never done for any reward; it is done because of the inherent good in it. Thus, whatever we do is our moral duty. This is what primarily differentiates a man from a human being. A man has individual goals but a human thinks for the good of every individual, he works towards the betterment of humanity. This nomination is nothing but a blessing of Allah Almighty. He is the one who selected us for it and He is the one who will make us prosper.
What led you to establish Akhuwat?
The journey started when a widow came to me requesting for a loan of 10,000 Pakistani rupees, an equivalent of 64 US dollars, which she promised to return in six months. I thought she was not being truthful but I was surprised when she returned the loans six months later, with a beaming smile on her face. She told me that with that amount, she was able to purchase two sewing machines, start her business and even get her daughter married. That was the day I realised that people are poor only because of scarcity of resources. I shared this story with my friends and decided to dedicate my life to provide such opportunities to many other men and women across Pakistan. The journey started with a mere 10,000 Pakistani rupees. Now over 20 years, Akhuwat Islamic Microfinance has disbursed PKR 151 billion ($900 million) in interest-free microloans through its 800+ branches in over 400 cities across Pakistan. Some 5.1 million families have benefitted from these loans.
Today, Akhuwat is blessed to be the largest Interest-free microfinance programme in the world. What sets Akhuwat apart from other institutions is not only the provision of interest-free loans but Akhuwat’s recovery rate which is 99.94%. This reaffirms the trust that poor are trustworthy and credit-worthy. They lack nothing but resources.
What are the different programmes being run under the umbrella of Akhuwat?
Since its inception in 2001, Akhuwat has made an active effort to alleviate poverty in Pakistan primarily through the provision of small interest-free loans to empower socially and economically marginalized families. Akhuwat’s vision of development is based on the Islamic concept of Mawakhat which creates a relationship of mutual support and compassion between the haves and the have-nots.
At Akhuwat, we believe that education can produce a long-term impact on the lives of people. Our future plans also concern expanding the impact of the organisation to ensure financial inclusion and quality education all over the country. Like all other programmes of Akhuwat, Akhuwat Educational Services (AES) was also initiated as a response to multidimensional poverty which required further interventions for long-term change as opposed to short-term change produced by interest-free microfinance.
The AES has established four higher education institutions and over 300 schools all across Pakistan. Akhuwat Colleges in Kasur and Chakwal provide quality education to girls and boys while providing boarding facilities so that they are not a burden on their family’s income. Akhuwat University is Pakistan’s first fee-free university providing education to the underprivileged.
Akhuwat Clothes Bank (ACB) is another programme. ACB collects, sorts and cleans donated clothing and gifts them to low-income families. Akhuwat believes in providing support to the most marginalized members of society including trans-genders. Akhuwat Khawajasira Support Programme was launched in 2011. Under this programme, transgenders of 40 years or older, with a monthly income of less than Rs 10,000 receive a monthly stipend. To date, PKR 94 million has been disbursed to the Khawajasira community.
Akhuwat Health Services (AHS) has been working to provide access to healthcare facilities for the underprivileged. It has been providing professional medical help through its medical centre and health camps in various cities. Through its interventions, over 150,000 diabetic patients and 5000 diabetic foot patients have been treated across Punjab.
How do you maintain transparency in running the affairs of such a huge organisation?
There are two models of microfinancing. The first is the one in which you charge the borrower with the financial and operational costs while the second model is unique and one-of-a-kind. It is a revolution in the world of microfinance. This model is not an extension of the capitalistic system and market economy. This is a model based on the principles of brotherhood and solidarity. For example, when someone lends his brother Rs 10,000 that is the same amount he will ask for in return. So we believe that we should think of our underprivileged fellow Pakistanis as our brothers and sisters too. Although this model is based on the principles of Islam it is not just limited to Islam. All the religions in the world preach these principles, to think for others the way you would think for yourself.
Thus, Akhuwat’s success testifies to this model. We started with US $100 and now we have expanded to US $100 Million with a recovery rate of 99.9%. Many people have had their apprehensions regarding the sustainability of this model. We believe that the principles and values of Akhuwat such as brotherhood, solidarity, compassion, empathy and sacrifice will always exist.
Akhuwat’s model is based on the philosophy of Mawakhat, interest-free lending, volunteerism, no discrimination, use of religious places as points of mediation and transforming borrowers into donors.
The first principle of Akhuwat is providing interest-free microloans. This principle is based on the belief that poverty cannot be eradicated by charging the marginalized segments of society with interest as it adds to their burden and continues the cycle of debt.
Secondly, the use of religious places is a very integral part of Akhuwat’s policy. Akhuwat uses religious places which include mosques, churches and temples as places for loan disbursement. This ensures participation, transparency as well as accountability. It generates goodwill in the society and community.
Thirdly, Akhuwat believes in a society irrespective of caste, colour, gender, creed, politics and faith. So, essentially Akhuwat is a non-political and pro-poor organisation that provides loans to all without any discrimination of any kind.
What is the response of loan beneficiaries and do they pay back as per their commitments?
Our philosophy behind this initiative was that it’s better to provide people with interest free loans that help them stand on their feet rather than giving them charity. The idea was to enable them to start their own business, so they are able to support their own households and families. Till date, we have given out interest free loans to 5.1 million families and 42% of them were women who are now running their independent businesses. The success of our borrowers is testament of our success. And as far as the pay back is concerned, our recovery rate is as high as 99.9%. We started with US $100 and now we have expanded to US $100 million and our recovery rate has not dropped.
Dr Saqib, who is chairman of Akhuwat, is a prolific writer and has authored nine books. Dr Saqib last visited Qatar in 2018. In an online interview with Qatar Tribune, Dr Saqib spoke about Akhuwat and his feelings on being nominated for the Nobel Peace Prize. Excerpts:
How do you feel about your nomination for the Nobel Peace Prize?
I would like to start by congratulating every citizen of Pakistan. This nomination is not for me but for Pakistan and for every single person all over the world who believes that poverty can be eliminated. Every virtuous thing attributed to us is because of Pakistan. Alhamdulillah, I am very grateful to Allah Almighty for this honour. This has allowed the international community to see Pakistan in a positive light. I am grateful and humbled that we could bring Pakistan this honour and were able to do something for the underprivileged of Pakistan.
However, where I am highly grateful, I would also like to mention that whatever Akhuwat has done so far was never done for any worldly reward. Our sole purpose was to please our Creator, to have something to offer when we are presented before Him. I believe a kind deed is never done for any reward; it is done because of the inherent good in it. Thus, whatever we do is our moral duty. This is what primarily differentiates a man from a human being. A man has individual goals but a human thinks for the good of every individual, he works towards the betterment of humanity. This nomination is nothing but a blessing of Allah Almighty. He is the one who selected us for it and He is the one who will make us prosper.
What led you to establish Akhuwat?
The journey started when a widow came to me requesting for a loan of 10,000 Pakistani rupees, an equivalent of 64 US dollars, which she promised to return in six months. I thought she was not being truthful but I was surprised when she returned the loans six months later, with a beaming smile on her face. She told me that with that amount, she was able to purchase two sewing machines, start her business and even get her daughter married. That was the day I realised that people are poor only because of scarcity of resources. I shared this story with my friends and decided to dedicate my life to provide such opportunities to many other men and women across Pakistan. The journey started with a mere 10,000 Pakistani rupees. Now over 20 years, Akhuwat Islamic Microfinance has disbursed PKR 151 billion ($900 million) in interest-free microloans through its 800+ branches in over 400 cities across Pakistan. Some 5.1 million families have benefitted from these loans.
Today, Akhuwat is blessed to be the largest Interest-free microfinance programme in the world. What sets Akhuwat apart from other institutions is not only the provision of interest-free loans but Akhuwat’s recovery rate which is 99.94%. This reaffirms the trust that poor are trustworthy and credit-worthy. They lack nothing but resources.
What are the different programmes being run under the umbrella of Akhuwat?
Since its inception in 2001, Akhuwat has made an active effort to alleviate poverty in Pakistan primarily through the provision of small interest-free loans to empower socially and economically marginalized families. Akhuwat’s vision of development is based on the Islamic concept of Mawakhat which creates a relationship of mutual support and compassion between the haves and the have-nots.
At Akhuwat, we believe that education can produce a long-term impact on the lives of people. Our future plans also concern expanding the impact of the organisation to ensure financial inclusion and quality education all over the country. Like all other programmes of Akhuwat, Akhuwat Educational Services (AES) was also initiated as a response to multidimensional poverty which required further interventions for long-term change as opposed to short-term change produced by interest-free microfinance.
The AES has established four higher education institutions and over 300 schools all across Pakistan. Akhuwat Colleges in Kasur and Chakwal provide quality education to girls and boys while providing boarding facilities so that they are not a burden on their family’s income. Akhuwat University is Pakistan’s first fee-free university providing education to the underprivileged.
Akhuwat Clothes Bank (ACB) is another programme. ACB collects, sorts and cleans donated clothing and gifts them to low-income families. Akhuwat believes in providing support to the most marginalized members of society including trans-genders. Akhuwat Khawajasira Support Programme was launched in 2011. Under this programme, transgenders of 40 years or older, with a monthly income of less than Rs 10,000 receive a monthly stipend. To date, PKR 94 million has been disbursed to the Khawajasira community.
Akhuwat Health Services (AHS) has been working to provide access to healthcare facilities for the underprivileged. It has been providing professional medical help through its medical centre and health camps in various cities. Through its interventions, over 150,000 diabetic patients and 5000 diabetic foot patients have been treated across Punjab.
How do you maintain transparency in running the affairs of such a huge organisation?
There are two models of microfinancing. The first is the one in which you charge the borrower with the financial and operational costs while the second model is unique and one-of-a-kind. It is a revolution in the world of microfinance. This model is not an extension of the capitalistic system and market economy. This is a model based on the principles of brotherhood and solidarity. For example, when someone lends his brother Rs 10,000 that is the same amount he will ask for in return. So we believe that we should think of our underprivileged fellow Pakistanis as our brothers and sisters too. Although this model is based on the principles of Islam it is not just limited to Islam. All the religions in the world preach these principles, to think for others the way you would think for yourself.
Thus, Akhuwat’s success testifies to this model. We started with US $100 and now we have expanded to US $100 Million with a recovery rate of 99.9%. Many people have had their apprehensions regarding the sustainability of this model. We believe that the principles and values of Akhuwat such as brotherhood, solidarity, compassion, empathy and sacrifice will always exist.
Akhuwat’s model is based on the philosophy of Mawakhat, interest-free lending, volunteerism, no discrimination, use of religious places as points of mediation and transforming borrowers into donors.
The first principle of Akhuwat is providing interest-free microloans. This principle is based on the belief that poverty cannot be eradicated by charging the marginalized segments of society with interest as it adds to their burden and continues the cycle of debt.
Secondly, the use of religious places is a very integral part of Akhuwat’s policy. Akhuwat uses religious places which include mosques, churches and temples as places for loan disbursement. This ensures participation, transparency as well as accountability. It generates goodwill in the society and community.
Thirdly, Akhuwat believes in a society irrespective of caste, colour, gender, creed, politics and faith. So, essentially Akhuwat is a non-political and pro-poor organisation that provides loans to all without any discrimination of any kind.
What is the response of loan beneficiaries and do they pay back as per their commitments?
Our philosophy behind this initiative was that it’s better to provide people with interest free loans that help them stand on their feet rather than giving them charity. The idea was to enable them to start their own business, so they are able to support their own households and families. Till date, we have given out interest free loans to 5.1 million families and 42% of them were women who are now running their independent businesses. The success of our borrowers is testament of our success. And as far as the pay back is concerned, our recovery rate is as high as 99.9%. We started with US $100 and now we have expanded to US $100 million and our recovery rate has not dropped.
