BUSINESS AND ETHICS ASSIGNMENT

AKHUWAT FOUNDATION

QUESTION 1.
Akhuwat Foundation is a renowned non-profit organization based in Pakistan, dedicated to the
noble cause of eradicating poverty through innovative and sustainable solutions. Established in
2001 by Dr. Amjad Saqib, Akhuwat operates on the principles of interest-free microfinance and
social development.

At its core, Akhuwat believes in the transformative power of microfinance to uplift individuals
and communities. Unlike conventional financial institutions, Akhuwat provides interest-free
loans, ensuring that economic empowerment is accessible to even the most economically
marginalized segments of society. This unique approach reflects the organization's commitment
to fostering financial inclusivity and breaking the cycle of poverty.

The foundation's impact extends beyond financial assistance. Akhuwat places a strong emphasis
on education, healthcare, and community development. Through various initiatives, it strives to
create a holistic support system that addresses the multifaceted challenges faced by those living
in poverty. This comprehensive approach aims not only to elevate economic conditions but also
to enhance the overall quality of life for beneficiaries.

One of Akhuwat's distinctive features is its "Qarz-e-Hasna" program, which translates to "good
loan" in English. This program has successfully empowered countless individuals to start or
expand their small businesses, enabling them to generate sustainable income. By removing the
burden of interest, Akhuwat ensures that individuals can focus on building their livelihoods
without the financial strain associated with traditional loans.

Akhuwat foundation is founded on 4 pillars that are;

. IMAN
. IHSAN
. IKHLAS
. INFAQ
QUESTION 2.
In order to reduce poverty, the Akhuwat Foundation works in Pakistan utilizing a distinctive and
effective methodology that emphasizes community development, education, and interest-free
microfinance. The idea of interest-free microfinance is central to Akhuwat’s activities. Those
who are economically deprived can apply for Qarz-e-Hasna,or interest free loans,from the
foundation. This strategy differs from traditional financial institutions, which frequently impose
interest rates that can be quite burden some for individuals who are already experiencing
financial difficulties. The foundation’s strategy, which aims to economically and socially
empower people and communities, is based on the ideas of inclusion and brotherhood.
Akhuwat seeks to end the cyclye of poverty by doing away with interest and providing a viable
way for people to launch or grow small companies. The interest free loans recipients from
Akhuwat are referred to as Misaali, which translates to “exemplary”. These people receive
financial assistance that is catered to their unique requirements and cover a variety of
industries, including small businesses, livestock and agriculture. With the help of loan, Misaali
are able to increase their standard of living, make ends meet, and support local economies. In
addition to offering financial support, Akhuwat promotes a feeling of collective advancement by
highlighting the value of accountability and community solidarity. Another essential aspect of
the work done by the Akhuwat Foundation is education. Since the foundation believes that
education is a major factor in promoting socioeconomic progress, it offers students interest-free
student loans. With the help of this program, worthy people will be able to pursue higher
education without having to worry about paying back loans. Through education, Akhuwat hopes
to provide people with the abilities and information necessary to overcome the limitations of
poverty, creating doors to greater career prospects and a higher standard of living. In addition
to providing financial support, Akhuwat actively participates in skill development initiatives.
Additionally, their initiatives focus on education, healthcare and community development. By
emphasizing financial inclusion and community support, Akhuwat Foundation contributes
significantly to uplifting the underprivileged and fostering a more equitable society, aligning
with the core objectives of the SDG’s .

QUESTION 3.
Akhuwat foundation lends loans without interest to poor people of society taking only one time
membership fee which is used for operating expenses.
BUSINESS MODEL OF AKHUWAT FOUNDATION:
The model is based on the concept of community solidarity where services are offered through
mosques and churches (the most visited places for members of the community). Akhuwat
provides individual or family loans without collateral on the basis of qard hasan. They seek to
provide children with educational Health Vocational recreational and counselling services. The
underline goal of all these programs is to provide financial access and support to the poor.
PRINCIPLES OF AKHUWAT FOUNDATION:
This foundation has 5 core principles that include;
interest free microfinance
use of religion places
non- discrimination
the spirit of volunteerism
converting borrowers into donors.
MISSION
To alleviate poverty by empowering socially and economically marginalized segments of the
society through interest free microfinance and education.

VISION
A poverty free society built on the principles of compassion and equity.

The objective of akhuwat foundation is to develop and sustain a social system based on mutual
support where each individual lives a life full of dignity and respect

The sustainable development goals were formulated at the United Nations conference in rio de
janerio in 2012.Pakistan was the first country to adopt the SDGs 2030 agenda through a
unamious resolution of parliament .Akhuwat have committed to playing our part to make the
world ino a safe heaven for our children and the generations to come.
Akhuwat vision coincides with the first SDG i.e.
No Poverty
as its aims to creates a poverty free society .Through its projects, the organizations targets
a total of ten SDGs .The instrument used to alleviate poverty is interest-free microfinance, which
caters to the economically marginalized segments of Pakistan .Since its inception in
2001,Akhuwhat has given loans to 4 Million families amounting to roughly USD
719,460,000.Akhuwhat provides loans with zero interest based on the belief that poverty cannot
be ericated by charging interest and doing business with the poor. Akhuwat provides interest-free
microfinance services to economically active poor families enabling them to become self-reliant.
SDG#2 i.e.ZERO HUNGER
Zero hunger is also focused upon by Akhuwat Food Bank which distributes food in a
dignified manner to deserving families .Akhuwat foundation provides farmers with shorts term
loans for the purpose of farming and growing crops as a finance analyst governor knew the fact
that he is doing a greater benefit to the nation .Akhuwat is dedicated to improving the lives of the
poor by distributing food who are financially abused.
SDG#3 Good health and well-being
Good health and well being promoted through the Akhuwhat Health Services which
serves the poor through affordable, efficient and effective health care in various capacities,
promote Mental wellbeing is promoted by encouraging open dialogue at monthly communal
dialogues and counselling services at the Fountain House Mental Health Institute. Akhuwat
foundation provide quality health services on a sustainable and affordable basis and free of cost
as well who are financially abused in a society.
SDG#4 Quality Education.
Akhuwat foundation established the program which has ten ongoing projects including
Pakistan first free university in Kasur. AES is preparing a new generation of leaders that will
transfer their communities and the future of Pakistan. Akhuwat foundation provide quality
education and nurturing leadership in youth. Akhuwat foundation also provides interest free
microfinance for providing quality education for those people who are not willing to pay their
fees and expenses.
SDG.5 GENDER EQUALITY
Gender equality is fundamental to a progressive society, which akhuwat has been promoting
since its inception. Akhuwat college for women and akhuwat khwajasira support program are
projects directly aiming to support and empower marginalized genders of the community.
SDG.6 CLEAN WATER AND SANITATION
Clean water and sanitation is promoted through the various community uplifting projects that
are underway of akhuwat. This includes the Kasur mawakhat program which empowers the
community to transform their own neglected village into a happy and healthy living space with
proper sanitation and facilities.
SDG.7 AFFORDABLE AND CLEAN ENERGY
This project also promotes affordable and clean energy by encouraging the use of solar energy
in order to carry out work on the fields.
SDG.8 DECENT WORK AND ECONOMIC GROWTH
Akhuwat encourage decent work and economic growth through all our economic interventions
including microfinance loans, cash transfers, professional development services at
oureducational institutes and job placements for the khwajasira community.
SDG.10 REDUCED INEQUALITIES
Reduced inequalities is addressed through every on going akhuwat projects as they aim for an
inclusive society.
SDG.17 PARTNERSHIP FOR GOALS
Partnerships for goals is one of that is the driving force behind akhuwat’s growth model. Since
its inception, akhuwat has joined hands with various stakeholders including provincial and
federal government.