Conventional microfinance has failed for the alleviation of poverty
(Pakistan) A seminar relevant to the world’s Poverty day has been arranged in Lahore – Pakistan to discuss the global issues of poverty and its solutions. The seminar was organized by AlHuda Centre of Islamic Banking and Economics in which huge number of people participated from Microfinance, Islamic Microfinance and Banking sector. Different topics like issues related to poverty, current situation of poverty, socio-economic issues due to poverty and the strategies for the solution of all these issues were discussed. The facts and figures presented in the seminar made the point clear that poverty in the world is increasing day by day which shows that the conventional microfinance has been failed for the development of proper strategy for addressing the issues & solutions of poverty. In this regard, there is a need to design an alternative strategy for alleviation of poverty for the provision of several facilities like Socio-economic harmony, health facilities, education and basic rights etc. by dipping the poverty so that psychological trends, deprivation, unemployment, terrorism and other problems could be resolved which are either directly or indirectly related to Poverty.
While addressing to the seminar, Chief Executive officer of AlHuda Centre of Islamic Banking and Economics, Mr. Zubair Mughal said that poverty is not only the problem of Pakistan but a global issue. In fact, the declaration of Millennium Development Goals (MDGs) by United Nations to cut down the poverty to half till 2015 seems unachievable because the poverty is continuously increasing. He said that one of the major reasons of no reduction in poverty is to follow wrong strategies. He further said that it is an alarming situation that poverty is continuously increasing in Muslim World and 46% of world’s poverty exists in Muslim countries and almost one-half of the 56 IDB member countries in Asia and Africa are classed as Least Developed Countries (LDCs) by United Nations. He further added that basic reason of poverty in Muslim Countries is that Muslims around the world avoid Conventional Microfinance due to the factor of interest and remain wedged in poverty so Islamic Microfinance can be utilized to eliminate the poverty from Muslim countries. It must be noted that by using Islamic Microfinance, Muslim and Non-Muslim countries can get rid of poverty. Latest research has proved that Islamic Microfinance has more qualities than conventional microfinance.
AlHuda, Centre of Islamic Banking and Economics