Bank Alfalah has announced a strategic partnership with Akhuwat to establish a dedicated centre aimed at empowering over 1,000 women entrepreneurs through interest-free microfinance over the next three years. This collaboration underscores both organizations’ commitment to financial inclusion and sustainable economic development in Pakistan.
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Akhuwat, a pioneer in interest-free microfinance, has played a transformative role in poverty alleviation since 2001, disbursing over PKR 250 billion in loans to benefit more than 4 million families. By extending beyond financial assistance to include education, healthcare, and social guidance, Akhuwat has built a holistic model for community upliftment.
Through this partnership, Bank Alfalah and Akhuwat will provide women entrepreneurs with access to capital, enabling them to establish or expand their businesses. The newly established centre in Karachi will act as a hub for women-led enterprises, offering loans under Akhuwat’s Qarz-e-Hasan model. Loan amounts will range from PKR 30,000 to PKR 100,000, ensuring financial support for women from underprivileged backgrounds.
The initiative aligns with the United Nations Sustainable Development Goals (SDGs), particularly in promoting gender equality (SDG 5) and fostering economic growth (SDG 8). In addition to financial support, the centre will offer financial literacy training, networking opportunities, and social guidance to help women build sustainable businesses. A unique aspect of the program is its sustainability model, where successful borrowers can later transition into donors, creating a cycle of economic empowerment.
Mehreen Ahmed, Group Head of Retail Banking at Bank Alfalah, emphasized the importance of this initiative in Pakistan’s economic landscape, stating that empowering women is crucial for national development. She highlighted that access to interest-free microfinance enables women to turn their ideas into viable businesses, contributing to economic progress.
Dr. Amjad Saqib, Founder and Executive Director of Akhuwat, expressed confidence that this initiative would provide women with the financial independence needed to become active contributors to society. He reaffirmed Akhuwat’s mission of fostering a spirit of mutual support and social responsibility.
Bank Alfalah has consistently demonstrated its commitment to financial inclusion and gender equality. As a mandate holder for the Benazir Income Support Program (BISP), it has facilitated financial access for 4.3 million women. The bank has also promoted economic participation through initiatives like the Banking on Equality framework, agricultural finance literacy sessions, and SME financing, disbursing over Rs. 10.4 billion under the SAAF scheme.
Additionally, its Revive and Rise microfinance program has successfully provided PKR 200 million in funding to 700 rural entrepreneurs, with 43% of recipients being women.
This partnership between Bank Alfalah and Akhuwat represents a powerful step toward bridging financial gaps, supporting underserved communities, and driving sustainable economic growth across Pakistan.
