ایثار مائیکروفنانس Arshad Mehmood Head of ESAR Program 3 rd Islamic Microfinance Forum 8 th October 2013, Dubai-UAE
» Vision Helping Hand as a Leader... Empowering lives, creating opportunities and strengthening the bond of humanity » Mission Helping Hand is committed to serve humanity by integrating re-sources for people in need. We strive to provide immediate response in disasters, and effective programs in places of suffering, for the pleasure of God.
» HHRD was established to fulfill the responsibility of Muslim community towards humanity regardless of race, gender, ethnicity, class, location, religion, color, cultural diversity and social background. Who feed the poor, the orphan, and the captive for the love of Allah, (saying) We feed you for the sake of Allah Alone; we seek from you neither reward nor thanks, for we dread our Rabbs (Lord) torment of a very distressful Day. (Quran Surah 76, verses 8, 9, 10)
» Health » Emergency Response » Physical Rehabilitation » ESAR Microfinance » Skills Development » Orphan Support Program » Water for Life » Infrastructure Development » Education » Seasonal Program » In-Kind Donations Program » Children with Disability Support
» To facilitate and support livelihood opportunities and microenterprise development for poverty alleviation through provision of Islamic Microfinance as a Flagship Program of HHRD
» To enable economic wellbeing and resilience for people with low incomes, especially suffering the disaster, through interest free microfinance. » Provide social assistance, capacity building and integrated development ingredients to support the poor break the poverty cycle by creating the spirit of brotherhood. » To institutionalize the ESAR Microfinance Program regarding sustainable, growth-oriented and replicable one.
2009 Starting of Interest Free Microfinance - IFMF Program 2010 Initial Stage, declared as a seprate program of HHRD 2011 Extension of IFMF Program from AJK and KPK to Punjab, Sindh and Baluchistan 2012 A Pardigm Shift launched for the sustainability of the IFMF Program; shifted from Qarad e Hasan to profit-loss modes of financing 2013 Decleired as year of sustainiability
No. of Clusters26 Geographic Coverage (District and UCs)24 Districts, 26 UCs Accumulative Beneficiaries10,107 Accumulative DisbursementPKR 230 Million Active Beneficiaries5,569 Recovery Ratio99%
Mansehra Rawalpindi Mianwali Muzaffargarh Rajanpur Dir Bahawalpur Ziarat Jaffarabad Jacobabad Kashmoor Shikarpur Chitral Kotli Rawalakot Hattianbala Gilgit Thatta Swat Malakand Charsada Nowshera Benazir Abad Matiari Tando Allah Yar HHRDs Interest Free Microfinance – IFMF Program Mirpur Khas
Cluster Base Approach Participatory Approach: Community oriented Interest Free: Islamic Modes of Financing Sustainable: Operational Self Sufficiency Universally Replicable Branchless Network with Online System Shariah Certified Enhancement of Income Generating Activities Livelihood Supportive with Capacity Building Component Breaking the Poverty Cycle through Integrated Approach Humanitarian Essence Believed in Potential of Poor Transparency through third Eye (through Community Humanitarian Forums)
Area Identification HR Selection & Facilitation Base Line Survey Target Group Identification Community Mobilization & Organization Disbursement Recovery & Follow up
» Area Identification +Acutely affected during any disaster and declared by concern authority +Relief activities completed +Special area identified by donor » Human Resource Selection & Facilitation +Microfinance Facilitation Officer – MFO work at cluster level +Locally announced for suitable candidate, having master degree and preferred development sector experience +Test and interviews held and appointed at merit +Capacity building regarding field operation and basic concepts +Facilitation regarding transportation, mobile phone, laptop, internet, camera etc.
» Base line survey. +Identification of Activists +Union Council Profile +Village Profile » Identification & Selection of Beneficiaries. +Individual meeting with people who engaged with different Income Generating Activities (IGAs) +Dialogs. +Mobilization. +Selection of beneficiaries.
» Community Mobilization & Organization. +Program Introduction. +Listing the members, there should be 15-25 members in a CO/MC. +With mutual consultation, members elect their President and Manager. +Every member make saving as possible. +To fix the time, day and location for the meeting of CO/MC and lay stress on the 100% attendance. +Community Organization (CO)/Market Committee (MC) formed.
» Disbursement. +CO/MC nominates the potential borrowers and passed resolution. +Borrower appraisal by Microfinance Facilitation Officer (MFO). +Appraisals sent to Head Office along with CO/MC resolution and two pictures & copy of valid CNIC. +Appraisal analysis and verification. +Delivery of cheque. +Agreement b/w HHRD & beneficiary. +Distribution of cheques/items. » Repayment. +Repayment in 10 monthly installments or lumsum. +Recovery through CO/MC. » Follow-up and assistance.
Assistance Mechanism In-depth Analysis Field Level Scrutiny Initial Stage Social Mobilization Beneficiaries Identification AppraisalCO & CFC Microfinance Facilitation Officer Follow up Country Director MFCRecovery Program Officer RejectedApproved Disbursement Regional Coordinator
ClusterEach Union Council Average Portfolio ($48,000 given every six months) $96,000 Average Number of Beneficiaries (Every Six Months = 150) 300 Portfolio of Each Beneficiary$320 Operational Expenses'$14,000 Operation Cost Ratio14.58% Recovery Profits$14,000 Expenses = Profits
Abdul Majid from Batakundi, Naran Valley – earthquake affected area and Pea farmer Received seed and fertilizer from money lender. The price was very high. Delivery not timely. Bounded to sale out the production to same money lender. Sale price low compared to market price. Problem Financial assistance with out exploitation Got seed and fertilizer from HHRD on Murabah bases having amount PKR 35,000 Solution Got required inputs at low price and timely Sale out the production in open market Got PKR 70,000 additional benefit Shifted his kids to upper level school Purchased some household items Result
A Beneficiary from Agra-Charsada A Beneficiary from Nowshera A Beneficiary from Madyan-Swat Distribution Ceremony Kalam-Swat Material handing over at Chitral A Beneficiary from Lower DirA Beneficiary from Shinkiari Distribution Ceremony Naran Valley A Beneficiary from Thana-Malakand
Community Meeting at Jampur Distribution at Kot Addu Distribution at Rawalpindi Distribution at Mianwali A Beneficiary at Goth Mehrab Bahawalpur A Beneficiary at Tiba Badar Sher Bahawalpur
A Beneficiary at Sultan Kot- Shikarpur Introductory Meeting Zhair Pir-Matyari A Beneficiary at Tando Hafiz Shah-Thatta Community Meeting at Bandhi-Nawab Shah A Beneficiary at Thulli- Jaccobabad Community Meeting Tando Allah Yar A Beneficiary at Ghous Pur- Kashmoor
A Beneficiary at Dirgi-Jaffarabad, Baluchistan Distribution Ceremony at Ziarat, Baluchistan Distribution of Items at Jaglot-Gilgit
A Beneficiary in her Kitchen Garden, Hurnamera-Rawalakot Distribution of Sewing Machines at Tarala-Kotli Community Meeting at Lamnian- Hattian Bala