Bank Alfalah and Akhuwat Join Hands to Empower Women with Interest-Free Loans Worth PKR 25 Million

Bank Alfalah, one of the biggest commercial banks in Pakistan, has announced a new partnership with Akhuwat, a well-known non-profit organization. Together, they will set up a special centre to support over 1,000 women by providing them with interest-free loans over three years. The goal is to help these women become financially independent by starting or expanding their businesses. This collaboration is a big step forward in promoting financial inclusion and sustainable economic growth in Pakistan.

Akhuwat has been working to reduce poverty since it was founded in 2001. It has helped millions of people by offering interest-free loans. So far, it has given out more than PKR 250 billion in these loans, helping over 4 million families across Pakistan. But Akhuwat does more than just provide financial support. It also helps communities with education, healthcare, and social guidance, making sure they have all the resources they need to improve their lives.

With this partnership, Bank Alfalah and Akhuwat will focus on helping women entrepreneurs. The new centre, which will be based in Karachi, will provide a space where women can learn, connect, and receive financial help. They will be able to apply for interest-free loans through Akhuwat’s Qarz-e-Hasan model. This means they can borrow money without worrying about paying extra charges or interest.

This initiative supports the United Nations’ Sustainable Development Goals (SDGs), especially in two important areas: gender equality (SDG 5) and economic growth (SDG 8). By giving women the tools they need to succeed, the project will contribute to the overall development of the country.

The centre will offer a range of services to help women succeed in business. These services will include:

• Financial literacy training to teach women how to manage money and grow their businesses.
• Networking opportunities to help women connect with other entrepreneurs and form a supportive community.
• Social and civic guidance to help women understand their rights and responsibilities in society.

Women from low-income backgrounds will be able to apply for interest-free loans ranging from PKR 30,000 to PKR 100,000. This money can be used to start a new business or expand an existing one. The project also aims to create a system where women who succeed can later help others by donating to the fund, ensuring continuous support for new entrepreneurs.

Mehreen Ahmed, Group Head of Retail Banking at Bank Alfalah, emphasized the importance of this initiative. She said, “Empowering women is essential for Pakistan’s progress. By working with Akhuwat, we are creating a financial system where women can grow their businesses without financial stress. Interest-free loans give them the chance to bring their ideas to life and contribute to the economy.”

Dr. Amjad Saqib, Founder and Executive Director of Akhuwat, also highlighted the significance of this collaboration. He said, “Akhuwat has always believed in the power of unity and support. With Bank Alfalah’s help, we can provide women with the financial independence they need to shape their futures and play an active role in society.”

Bank Alfalah has always been committed to financial inclusion and women’s empowerment. The bank plays a key role in the Benazir Income Support Program (BISP), helping over 4.3 million women gain financial access. In line with the State Bank of Pakistan’s ‘Banking on Equality’ framework, Bank Alfalah has worked hard to promote financial education. It has trained more than 2,600 farmers through Agriculture Finance Literacy Sessions and has supported small and medium-sized businesses (SMEs) with over Rs. 10.4 billion in loans under the SAAF scheme.

Additionally, the bank’s Revive and Rise microfinance program has provided PKR 200 million in loans to help 700 rural entrepreneurs, 43% of whom are women.

Through this partnership with Akhuwat, Bank Alfalah is once again proving its commitment to reducing financial inequality, supporting underprivileged communities, and helping Pakistan’s economy grow in a sustainable way.

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