Farz Foundation & Institute of Islamic Banking sign MoU

The Farz Foundation and The Institute of Islamic Banking of the University of Management and Technology have signed a Memradum of Understanding on April 12, 2012.
The Farz Foundation is engaged in Islamic Microfinance and activities including, poverty alleviation through livestock and agriculture, capacity building, institutional development, social welfare, Zakah distribution to the poor in productive manners and handholding of micro and small enterprises with shariah compliant finance products.

Memorandum of Understanding (MoU) Between Farz Foundation & University of Veterinary and Animal Sciences Lahore

This MoU is made this 26 day of Jan 2012 between Farz Foundation (which expression shall mean and include its successors and assigns) of the first part; And
The University of Veterinary and Animal sciences (which expression shall mean and include its successors and assigns) of the second part

Oxford Microfinance Initiative takes feasibility evaluation of Farz Methodology

LThe Oxford Microfinance Initiative (OMI) project team has consented to undertake a preliminary study to evaluate the feasibility of Farz Methodology as well as Farz Foundation's financial products for expansion throughout Muslim countries.

Farz Foundation, WCMP Ink
a History Deal

Lahore: The World Congress of Muslim Philanthropists (WCMP) and Farz Foundation have singed a Memorandum of Understanding the other day.
The World Congress of Muslim Philanthropists is a global network of affluent individuals, foundations, and socially responsible corporations established to advance effective and accountable giving. WCMP is a catalyst for partnership across public, private, and social sectors, offering information and resources to link donors with social investment opportunities.

FARZ, HIGHLY KEEN AGREE DEVELOP SHARIAH COMPLIANT HR MANUAL

Islamic Saving and credit Cooperative of Cameroon Replicates Farz Methodology

Islamic Saving and credit Cooperative of Cameroon Is the third Islamic Microfinance organization that will implement Farz Methodology . Earlier, The NGO World Foundation and AAS Foundation Bahawal Nagar Pakistan had already joined hands with Farz Foundation to replicate interest free, partnership and asset based methodology. Farz Foundation will provide to the afore-mentioned organizations with technical assistance and Shariah compliant poverty alleviation services.

Farz Foundation signed an MoU with AAS Foundation Bahawalnagar

Farz Foundation has signed an MoU with AAS Foundation Bahawalnagar. Under the agreement, AAS Foundation will roll out Islamic Microfinance products of Farz Foundation including its Halal Business products (Livestock through Islamic Microfinance). The Farz Foundation will provide advisory services for Islamic institutional development and Farz Islamic microfinance methodology.
Farz Foundation will also build the capacity of the staff of AAS Foundation to kick of Islamic Microfinance operations.
The AAS Foundation will share its experience of kitchen gardening with the Farz Foundation. The AAS Foundation works in Bahawalnagar with an integrated approach and has prior experience in Islamic microfinance products. The AAS is working in District Bahawalnagar catering to 4500 households.

(Multan 20 July 2011) The NGO World, a registered organization with prime focuses on community development, capacity building and relief & rehabilitation sectors, steps in poverty alleviation grounds through Islamic Microfinance by replicating Farz Methodology.

Church World Service Pakistan/Afghanistan Facilitates Farz Foundation

Church World Service Pakistan/Afghanistan is supporting Farz Foundation in developing five years organizational strategic plan. CWS has engaged Farz Foundation for five weeks with their experts for mentoring and building the capacity of Farz Foundation's senior management. Farz Foundation's staff would be able to develop not only Strategic plan but this capacity building will make us able to write annual reports, proposals and business plans also expressed Farz Foundation's CEO after concurring in the accord in Murree.

FARZ FOUNDATION LAUNCHED SHARIAH COMPLIANT LIVESTOCK PRODUCT

Farz Foundation Registered Under Companies Ordinance 1984

SMEDA issues letter of support to Farz Foundation

Lahore: The first Islamic microfinance organization, Farz Foundation and Aik Hunar Aik Nagar ( AHAN) has singed an MOU to cooperate with each other in the field of poverty alleviation and construction of Farz SME villages.

Lahore: The Farz Foundation and Naymet, two Islamic microfinance organizations were awarded Bolan awards for their services in the field of poverty alleviation and rehabilitation of flood victims.

Farz Foundation & Pak-Qatar Family Takaful reach life-saving accord

To achieve financial goals in such difficult times is by no means easy business. Farz Foundation took up the task of fighting poverty when the microfinance world was facing a unique and grave sustainability crisis and the Global Economy is facing the
biggest crisis of the history as well. Much to our amazement, the initial outcome is quite encouraging.
In spite of our funding constraints and lack of technical support, recoveries are 96 percent on time with zero percent PAR, while our one of a humble initiative of "livestock Mudarbaha", the business growth rate is more than 24% annual.
There are only 4% partners mismanaging their business. We even didn't give up on them and gave "out of the routine trainings" to make them capable of honorable earning and help alleviate poverty.

There was a time when the trickle down effect demonstrated its outcomes, while the time has come, the global economy does not seem stay alive without implementing on my humble theory of "Twist Up Economy", which emphasizes to make the three
billion poor our Productive Micro Partners(PMPs) to not only kick start a huge potential economic cycle but also to build a wide international customer base. Farz Methodology has been developed on the philosophy of developing micro partnership
with the poor on profit and loss basis. At present it is being implemented in Pakistan and abroad. We the microfinance practitioners have done it and proved that it is possible and promising to turn the threat into an opportunity. Our goal is to "empower" the poor with a sense of self belief. .

Farz Foundation is the first Shariah Certified Islamic Microfinance organization of Pakistan. It has done a pilot project of Islamic Microfinance by offering Murabaha, Saving, Takakful through a well designed Islamic Microfinance methodology (known as Farz Methodolgy ). After conducting the 18 Month pilot, Farz published its report.

The purpose was to develop a sound and pure Islamic Microfinance Institution with an integrated methodology, which could provide not only the faith‐based market driven and client‐oriented Shariah compliant products but could also provide a full fledge Islamic Microfinance Model as an interest free/partnership focused/asset based microfinance vehicle for a worldwide market to contribute a noticeable input for strengthen the world economy at large.

The persistent current economic crisis is pushing the global economy to adopt the way nature acts. Sometimes we find the resources by digging out the things, while any other time the nature through them out from bottom to upward. The failure of trickledown effect is also indicating the need of identifying a divergence to open any new headway of growth, productivity and a long term sustainability of economy at large.

Here I find an ultimate firmness by embracing the "Twist Up Economy" theory, addressing the core issues with a great resolution. Fortunately the Twist Up Theory is the ever first model, which seems a wise accordance with Capitalism, Socialism, and Islam. However the basic reason of the reinventing the global economy is not to see or to design the similarities between the three, but to pull the sinking ship out of the cold waters.

Twist up theory emerges as a rejoinder to trickledown theory. It is a course with the notion that the sustained micro and small businesses assure the sustainability of the macro economics. It increases the numbers of consumers and their capability to buy. It also strengthens the markets and supports rich persons to expand their businesses as well as the poor to fulfill their dreams about a life out of poverty. The world has long relied on trickledown theory but it could not ensure desired results. I believe that entrepreneurs and SMEs on the other hand could be very handy in bringing about the desired change at
the lowest level and from there the trickledown effect may begin its upward journey to bring about even a macroeconomic stability.

Farz Foundation is the newest social player with a new, modern and social performance based Methodology known as Farz Methodology. Farz believes in Partnership with the poor instead of making them borrowers. Farhat Abbas Shah, the CEO of Farz Foundation, introduced a pivotal economic theory labeled Twist Up theory which emphasizes the economic sustainability of the poor by making them productive. The theory explains that the economic flow must go from down to upward, instead of trickling down from above.

Social entrepreneurship is the work of social entrepreneurs. A social entrepreneur recognizes a social problem and uses entrepreneurial principles to organize, create and manage a venture to achieve social change (a social venture). While a business entrepreneur typically measures performance in profit and return, a social entrepreneur focuses on creating social capital. Thus, the main aim of social entrepreneurship is to further social and environmental goals. Social entrepreneurs are most commonly associated with the voluntary and not-for-profit sectors [1], but this need not preclude making a profit. Social entrepreneurship practiced with a world view or international context is called international social entrepreneurship.[2] See also Corporate Social Entrepreneurship.

Down grading of America's credit rating from AAA indicates world economic recession is aggravating. About ten thousand American industries have shut down since 2003. In equality between extreme incomes groups is soaring. All these developments emphasize the fact the interest based economic system has failed to kick start the economy. And this has come to the point where political and social unrest is hitting the economies like United Kingdom. All that is left is a partnership based system, which Farz Foundation has propounded.

The practitioners, professionals and scholars of Islamic Microfinance are facing a challenge to draw a standard Islamic Microfinance Model's out line, which could encircle the needs and issues of the social and commercial both modes of poverty alleviation. A sustainable faith-based microfinance model is the real requirement of the industry, which has been expected from conventional models also and obviously not fulfilled according to the necessity.

10 core components of Islamic Microfinance Model requires a bit elaboration of the prohibitions also. When we enter in Poverty alleviation scene through any Islamic model, we can't exclude Zakah, Qarz e Hasna, and Sadqah Khairat. The microfinance professional who believe in microfinance as a social business will agree that the earning high profits by the partnership with the poor is better than earning from the poor. If we claim that we wish to make the poor productive but we did do not develop the mechanism and can not assure the productivity of the poor, how we can expect the required results even from the mechanism we implement.

Lots of studies conducted by major stakeholders showed Islamic microfinance as a huge untapped market. The figures suggested to jump into any new pattern of microfinance. The pitfalls of conventional microfinance also pushed the serious players of the sector towards Shariah compliant model along with a new commence of SME. The incentive for MFIs to graduate into Microfinance Banks ( The department of Microfinance, State Bank of Pakistan is working smartly on this move ) and the decisions of G20 policy makers proved that the expectations from conventional microfinance could not bring-in the targeted results and devastated their confidence upon the sector. Finally, the removal of Professor Yunus confirmed that the high ups has taken the decision to minimize the conventional microfinance activity and to convert the investment potential to the SME and Islamic Microfinance model. High interest rates like Compartamos Banco exercises, over indebtedness, rapid growth, weak impact, suicides of clients in Andhra Parades, suicides of MFI staff in Asasa Pakistan, late night recoveries, and the role of ghost managements of MFIs jointly directed the stakeholders towards a paradigm shift.

According to the observation, mostly, at Islamic Microfinance Sector level, it is being practiced with the conventional structures. If there is any will to do can feel for Islamic Microfinance, the lake of proper systems and unavailability of skilled staff are the hurdles.

Mr. Azhar Nadeem from Pakistan is working as Program manager Economic Development in Human Development Foundation Islamabad. He has almost a decade of retail Microfinance experience in pakistan and held various positions in this field. Islamic Microfinance or Faithbased Microfinance is the area of his interest.He believes that Islam is continuity of Abrahamic religions. He is working to find similar set of poverty eradication tools in Judaism and Christianity as well. He has written two papers recently about the subject, which are being presented for our readers.

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Recent floods in Pakistan have further plunged the already reeling economy. The estimation of the total damage will take some time but the need to microfinance the victims are dire as the failure in this sector can create a famine in not too distant a future.

The Methodologies and Products of Microfinance both need refinement