‘Centre of Excellence in Islamic Microfinance’ Established
(Lahore) Centre of Excellence on Islamic Microfinance has been established in Pakistan in order to provide Capacity Building, Shariah Guidance and capacity building to the Microfinance & Islamic Microfinance Institutions, considering its popular trend in poverty alleviation from the world. This Centre of Excellence will start operations simultaneously through its partner’s offices in Azerbaijan, Mauritius, Kazakhstan, Nigeria, Netherland, Switzerland, Ireland and South Africa, which will greatly help in eliminating poverty of from the world through the usage Islamic Microfinance. It is added here that the poverty situation is getting verse throughout world and the Microfinance Institution are on the down and out situation as evident from the current Microfinance crisis situation in India and Latin America and Islamic Microfinance is being adopted as a reliable remedy for the situation.
Muhammad Zubair Mughal, Chief Executive Office of AlHuda Centre of Islamic Banking and Economics said at this occasion that Islamic Microfinance has become important because of the fact that 46% of the poor in the world live in Muslim countries as out of the 57 member countries of IDB are captured by poverty. Not only that, Muslim countries can get rid of the poverty by adopting Islamic Microfinance but even the Non-Muslim countries are also adopting it beneficially. He further added that Islamic Microfinance not only brings the people above the poverty line but also makes them self reliant through a regular source of income so that they may not fall below it. Many International agencies like: USAID, CGAP, World Bank, IDB and ADB and DIFID and UN are also adopting it as a mandatory option and setup their own departments.
He said that Islamic Microfinance has the ability to adopted with any Micro financing Model of the world including Village Bank Model, Garameen Model, Co-operative and self help Model, so a Microfinance Institution case easily take-up Islamic Microfinance without any structural modification. Millennium Development Goal (MDG) of UN cannot be successful unless they adopt Islamic Microfinance as almost half of the poor population is Muslims and they do not go for “Interest” based Microfinance system being prohibited in Islam.
AlHUda-Centre of Excellence on Islamic Microfinance will be helping Microfinance Institutions in adopting the Islamic Microfinance system through the system development, Gap Analysis and Adoption routing, Shariah Backbone as it is not only a social responsibility but a religiously mandatory as well.