1. AZM Foundation - Pakistan 8th Global Islamic Microfinance Forum
The Challenges of International Diversity, regulations & Supervision in Islamic Microfinance
Fahad Liaquat
AZM Foundation - Pakistan
November 26,2018
8th Global Islamic Microfinance Forum
Dubai- UAE

2. Conventional Microfinance Myth about Islamic Microfinance
Making the Riba Halal is known as Profit
And
Converting the mode of interest is known as Profit
The Holy Quran says “… and do not conceal testimony, and whoever conceals it, his heart is surely sinful.”

3. Islamic Financial Intuitions (IFIs) are facing immense challenge due to competition from Conventional Financial Institutions (CFIs), excessive presence of complex financial instruments and a typical asset-liability structure.

4. Islamic Vision "Islamic" part of it is related to:
financing structures, but also to the idea of building community through empowering people. 
Customers don't have to be Muslim. 
It is also (we hope) good public relations to have an "Islamic" organization involved in economic development.

5. Where We are…
With the Islamic finance industry pushing $1.5 trillion (IFSB) in 2008 and will increase up to $ 6.5 trillion in 2020 (IFSB-Khaleej times), why we have not seen larger scale social investment?
Should Islamic finance “innovation” include innovative ways to alleviate poverty? Because an institution is “Islamic” does this mean it has a particular obligation to invest in economic or community development?
How does the concept of Islamic microfinance operate to serve the goal of poverty alleviation?

6. Where We are…
A clear gap line between the Academic Institutions and the practioners. Academics are limited to academic research but never be a part of Operational research ( very few)
Replication of models and technical support at Grass root level
Operational research and dissemination is one of the main challenges

7. Governance & Supervision Issues/Challanges to IMF
Community education
High transaction costs
Funding sources
Legal structures ( Shahria Board is some times unaffordable)

8. Why now?
With the Islamic finance industry pushing $6.5 trillion by 2020, why have we not seen larger scale social investment? The IMFs are not having the share of it because
Islamic Finance industry development and awareness
Financial support to IMFs at grass root level
Attention to business ethics
Attention to human capital
Is available in developing world
Needs support from developed economies

9. Few Thoughts
How many organizations is ready to sign MOU between each other
(Immersion visits)Important is to travel into each other country to learn their experiences at their working areas.
Operational & Academic research shall be the integral part of this forum

10. Today is history now and tomorrow is waiting for future endouvres