Case #2074.0

Akhuwat: Fighting Poverty with Interest-Free Microfinance

Publication Date: September 30, 2016
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Abstract:
This case is about Akhuwat – one of the largest micro-finance organizations in Pakistan. The case presents Akhuwat's phenomenal growth from a small philanthropic experiment into one of the most prominent micro-finance organizations in Pakistan. This case also discusses the part played in this growth by Amjad Saqib, co-founder and Executive Director of Akhuwat, his relationship with the government and his charismatic leadership style. Akhuwat's unique operational model of charging zero interest rate on its loans, its ability to leverage faith-based teachings and its spirit of volunteerism are discussed as key drivers of its success. Overall, the case provides a unique insight into how micro-finance, government and faith can operate in harmony to alleviate poverty in South Asia.

Learning Objective:
Understand the role played by faith-inspired micro-finance organizations in alleviating poverty. Discuss a unique model of public-private partnership in South Asia in the micro-finance market that seems to set a stark contrast with experiences in India and Bangladesh. Analyze an organic model of growth and expansion that helped Akhuwat become one of the largest micro-finance organizations in Pakistan.

Other Details

Case Author:
Ussama Ahmad Khan
Faculty Lead:
Dick Cavanagh
Pages (incl. exhibits):
24
Setting:
Pakistan
Language:
English