Case
KICK-STARTING INDIGENOUS INNOVATION: A CASE OF AKHUWAT
INDUSTRY :N G O MANAGEMENT
AREA :HUMAN RESOURCE MANAGEMENT/ORGANIZATIONAL BEHAVIOUR
ORGANIZATION :-
LENGTH :39
LUMS No :05-761-2014-1
PUBLICATION YEAR : 2014
ABSTRACT:
In 2009, Dr. Amjad Saqib, Executive Director of Akhuwat, was deciding if he should introduce an interest-free financing model that effectively builds on the cultural uniqueness of the local community. This model aims to provide interest-free small loans (qarz e hasna) in the spirit of Islamic brotherhood where most activities are performed by volunteers. All activities revolve around religious institutions like mosques and involve a close interaction with the community. The loan disbursement method provides not only religious sanctity to the whole process but also very low operating costs. Dr. Amjad envisioned a poverty free society built upon the principles of compassion and mutual support, but is the interest-free model the right step in this direction? Moreover, there are questions about the scalability of this model and the composition of donors which need to be resolved before this model can be implemented.