Microfinance in Pakistan

Nizam Hussain- Pakistan

For Nizam Hussain, living in the Pakistani town of Rawalpindi, life had become a burden due to heavy debt and rising living costs. His employer, from a quilt stitching and filling business, rarely paid his wages on time or sometimes did not pay them at all.

The situation was so bad that Nizam was forced to stop his four children’s education.

“But how could I stop buying medicine for my old and sick mother?” he asked.

Then Nizam heard about Muslim Aid’s small interest-free loans.

“I went to Muslim Aid’s office and got a loan of Rs. 8,000, with the personal guarantee that I would be treated fairly,” he said.

Then Nizam started his own small business of stitching quilts and filling them with combed cotton.

“With the loan provided by Muslim Aid, I have earned a good reputation in my trade. I am self-reliant and have hired a skilled worker because my work load has increased. The Microfinance programme has helped two families”, said Nizam “With this loan, skills are recognised, people feel more respected and it has made us self sufficient”.

Thanks to the loan, Nazim, has been able to send his children back to school and continue to give his mother medicine. “Our domestic expenses are met regularly. We all are thankful to Muslim Aid,” he added.

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Fifty five year old Fida Hussain, a retired soldier is living with his wife and two daughter and two sons in a small mud house consisting of 2 rooms and a toilet.

After retirement he opened a small shop and started working as a cobbler repairing shoes. He felt he had the skills necessary to make shoes but was unable to expand his business due to financial constraints. However, he was not willing to accept a loan which would require him to pay interest.

“I got a loan from an organisation to start a business which I had to repay by a certain time but they charged interest. Then I decided that I would not take a loan. One day I received a leaflet outside a mosque in which Muslim Aid was giving interest free loans. I visited their office, got information and decided to apply. I was successful and received funds to purchase shoe making equipment such as scissors and pieces of leather. Now along with repairing them, I can also make shoes and sandals” said Hussain.

“There was very little profit in shoe repairing and we could hardly meet our expenses. This meant I was not able to provide an education for my three children. My elder boy, Husnain, is working with me but we hope to provide an education for the youngest children. Now with new equipment, my income has increased from Rs 3000 to Rs4000. I am making shoes and my son is repairing the damaged shoes. Thanks to Allah, that we got some relief. We appreciate Muslim Aid for initiating an interest free loan program. ” said Fida Hussain.