Microfinance Focus, October 8, 2011: International Conference on Islamic Microfinance was held in June this year in Islamabad, Pakistan. Over 500 industry experts, practitioners and stakeholders from 20 countries participated in the conference to promote Islamic Microfinance and chart its future growth.

Chief Executive Officer of Pakistan’s Microfinance Network, Mr. Ahmad discussed the challenges facing the industry and presented plausible solutions. He emphasized on institutional strengthening and developing legal framework for microfinance institutions. Partnership between State Bank of Pakistan, Pakistan Microfinance Network and Pakistan Poverty Alleviation Fund can address policy issues.

According to Mr. Christopher Candland, Associate Professor Department of Political Science and Director South Asia Studies Program, Wellesely College, USA, major researches on commercial microfinance show that the growth of microfinance has far outstripped its effective alleviation of poverty.

Giving a presentation on ‘Akhuwat: Redefining Microfinance’, Prof. Athar, University of Central Punjab said, “Microfinance is considered a viable proposition to alleviate poverty internationally but its sustainability is related to high interest rates”. “Microfinance should be provided at high financial cost considering that microbusinesses are more profitable than other commercial businesses.

Post conference, two days training workshops on fundamentals of Islamic Microfinance and marketing strategies was also conducted in Islamabad.