HSBC Amanah, the global Islamic finance services arm of the HSBC Group, recently announced it has entered into a partnership with Islamic Relief, a major international relief and development charity to offer a pilot Islamic microfinance scheme in Pakistan.
As per this partnership, HSBC Amanah will be providing funding towards Islamic Relief’s microfinance projects in Rawalpindi, Pakistan. HSBC Amanah will also assist Islamic Relief as required in developing the Shariah structure for financing models and contracts and providing Islamic finance training to Islamic Relief staff.
Islamic Relief will, in turn, manage microfinance projects, identify and screen beneficiaries, set out eligibility criteria, encourage entrepreneurs to come forward with lucrative business ideas for investment and provide financial and social reports to HSBC Amanah.
Nabeel A Shoaib, Global Head of HSBC Amanah said:
“We are extremely excited to partner with Islamic Relief in this ground-breaking initiative to bring greater financial inclusion to Pakistan’s poor and empower hundreds of families to capture good economic opportunities. We are confident that Islamic microfinance can be a promising finance tool that can help reduce poverty and accelerate economic growth and financial inclusion, particularly in impoverished rural areas.”
“HSBC Amanah is keen to encourage the development of the Islamic microfinance sector and to promote the production of a commercially viable microfinance business model with high social impact. Based on the results of this pilot project, HSBC Amanah will be rolling out other Shariah compliant microfinance schemes in other locations,’ Nabeel added.
Saleh Saeed CEO, Islamic Relief commented: ” We’re pleased to be part of this unique initiative, which combines HSBC Amanah’s Islamic finance expertise with Islamic Relief’s understanding of the dynamics of less privileged environments and constant interaction with the poor.
“Islamic Relief has experience of implementing microfinance projects in Pakistan as well as other countries in Asia and Eastern Europe. These projects help to alleviate poverty by providing people with the means to establish sustainable livelihoods. We are excited about the prospect of working with HSBC Amanah and look forward to replicating this model in other parts of the world where there is a pressing need to build financial inclusion for the entrepreneurial poor.”
source : optimist world