Islamic Relief Pakistan has been awarded the Shariah compliance certificate by the Accounting and Auditing Organisations for Islamic Financial Institutions Standards earlier this month.
The certification demonstrates that the Microfinance activities of IRP are in line with the Shariah Financing guidelines set out by the State Bank of Pakistan. The certification comes after a rigorous Shariah Audit conducted by Al-Huda CIBE (Centre for Islamic Banking and Finance) under close supervision of Shari’ah Scholars and experienced Islamic bankers.
At an International Islamic Microfinance Conference held earlier this month, IRP’s country director, Fadlullah Wilmot stressed the need to establish Microfinance institutions in the country and said,
“Islamic Microfinance is the only solution to root out poverty.”
“Our Islamic Microfinance project refrain borrowers from a debt trap and make them self-sufficient. Our micro-financing is not socially destructive, as it is purely based on interest-free Islamic values. We are using our financing techniques in development and uplift of the poor.”
40 percent of Islamic Relief’s beneficiaries of microfinance are women. In a country where three-quarters of the population live on less than $2 a day, microfinance programmes a vital in aiding people escape poverty.
The Director of Islamic Relief Pakistan, Fadlullah Wilmot, talks about the importance of Microfinance.