In a world where financial institutions often profit from the struggles of the poor, the Akhuwat Foundation stands as a powerful and compassionate exception. Founded in Pakistan in 2001, Akhuwat has become a global leader in interest-free microfinance, combining ethical financial support with broad social development to help millions escape poverty with dignity.

A Mission Born of Faith and Service

Dr. Amjad Saqib, a former civil servant and social visionary, created Akhuwat with a simple yet powerful idea: help people by lending them money without charging interest, in line with the Islamic tradition of Qarz-e-Hasna. This form of benevolent lending has been a part of Islamic teachings for centuries, but Akhuwat gave it a modern and institutional shape.

Starting with a loan of just 10,000 Pakistani rupees given to a struggling widow, Akhuwat built a system that values trust, brotherhood (Akhuwat), and social inclusion.

How Akhuwat’s Microfinance Model Works

Unlike traditional microfinance institutions that often charge high interest rates, Akhuwat’s system is entirely interest-free. This ensures that poor families are not further burdened when they seek financial assistance.

Key features of the model include:

• Loans Disbursed Through Community Institutions: Akhuwat operates through local mosques and churches, creating a social structure around lending that encourages responsibility and trust.
  
• Minimal Administrative Costs: Using community spaces and volunteers helps keep operational expenses low.
  
• Repayment Rate Over 99%: Because borrowers are treated with respect and accountability, most repay their loans on time.
  

Akhuwat’s model proves that ethical finance can be both sustainable and effective.

Services That Go Beyond Lending

The foundation’s vision extends far beyond microfinance. Akhuwat is also a social development powerhouse, running several programs to meet the needs of the vulnerable.

1. Education Initiatives

Akhuwat believes that education is key to ending generational poverty. The organization runs:

• Tuition-free schools in underserved communities
  
• Akhuwat College in Kasur
  
• Akhuwat University, Pakistan’s first tuition-free university
  

These institutions provide quality education to talented students who cannot afford it, ensuring they have the tools to shape their own futures.

2. Healthcare Services

Recognizing the link between poverty and poor health, Akhuwat runs:

• Mobile medical units
  
• Community health clinics
  
• Awareness campaigns on hygiene and preventive care
  

This enables access to medical support for those who would otherwise go untreated.

3. Clothes Bank

The Akhuwat Clothes Bank collects, refurbishes, and respectfully distributes donated clothing to the needy — promoting a sense of dignity and self-worth.

4. Transgender Support

Akhuwat supports transgender individuals by offering interest-free loans, skills training, and counseling. In a society where this group often faces severe discrimination, Akhuwat’s inclusive model offers them dignity and a pathway to independence.

5. Housing for the Poor

Akhuwat’s low-cost housing loans enable low-income families to build or improve their homes. These loans are also interest-free and repayable over time.

National Reach, Global Recognition

As of 2024, Akhuwat has:

• Disbursed over 170 billion Pakistani Rupees
  
• Served more than 5 million families
  
• Operated in over 400 cities and towns across Pakistan
  

Its ethical, scalable model has won international praise. Dr. Amjad Saqib was awarded the Ramon Magsaysay Award in 2021 — Asia’s highest honor for social impact.

Akhuwat’s success is studied by development experts worldwide, and several countries are exploring how to replicate its model.

Powered by Communities, Fueled by Donations

Akhuwat operates through donations from individuals, businesses, and philanthropists. One of its most remarkable features is the cycle of giving — many borrowers who successfully lift themselves out of poverty later return to the foundation as donors or volunteers.

This community-driven sustainability makes Akhuwat not just a charity, but a movement of solidarity.

A Blueprint for the Future

The Akhuwat Foundation proves that a compassionate and faith-inspired approach can create a real, lasting impact. It challenges the notion that microfinance must be profit-driven and shows that trust, dignity, and community engagement are not just moral values — they are strategic advantages.

In a global context where inequality is rising, Akhuwat offers hope. It is not just helping people survive — it is helping them thrive.

Conclusion: Changing the World, One Loan at a Time

The Akhuwat Foundation is much more than a microfinance institution — it is a humanitarian movement that restores dignity, creates opportunity, and empowers communities. Through interest-free lending, education, health care, housing, and inclusive development, Akhuwat is lifting millions out of poverty.

Its work reminds us that when finance serves humanity — not the other way around — real change becomes possible.