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THE TRUTH, AND NOTHING BUTThursday, January 21, 2010
An ambitious goal of fighting poverty
Staff Reporter
LAHORE: Farhat Abbas Shah emerged on the literary secne of Lahore about couple of year ago and immediately got the attention of the youth. He is a prolific writer who has already written about 67 books. Now he has ventured on a poverty alleviation drive by according to him a new coincept of micro financing which shuns interest and aims at profit loss sharing. Excerpts from his interview are being given belowQ: Microfinance generally failed to alleviate poverty. What different you intend to do in this sector?A: It has not failed I believe. It is yet in the process and it would deliver. This concept is just 12 yeas old. People involved in this are still in the process of learning. The experts in this field are endeavoring to identify the gaps. They are modifying it through making changes.Q: What gaps and weakness you have identified as yet and how do you intend to take it up?A: In the beginning it in fact was micro credit which was limited to loaning and recovery. Then it was realized that the person at the receiving end should not be treated as we do with the privileged people. We ought to give them non-financial services as well like micro insurance and micro saving. Then it was realized even this was not enough. The came the concept of microfinance plus. Q: What is micro finance plus?A: It includes credit discipline and awareness and basic business education. To put it brief, women empowerment and capacity building was also incorporated in it. Q: How Farz Foundation intends to take it up?A: We learnt through research and observation that the indented outcome was not in line with the expectations. Reason for this was the loans that were deemed productive they in fact proved non-productive. The borrowers were using their loans on non-productive activities. We came to the conclusion not to give them the hard cash. Instead, we would give them assets, tools and goods with which they could income generating activities. We have already started giving them these facilities. Q: Would explain what type of assets and services are you providing?
A: We for instances would buy the poor sewing and stitching machines, stuff like groceries to be sold by them at their outlets and transport etc. Amongst the non- financial services free eye-camps, general health care and free education for the children of the poor are included. Q: Have you become operational in achieving these goals?A: We have already started our operations from Lahore in the poor neighbourhoods like Chongee Amar Sidhu and borders areas in Kasur. In the first instance we will ensure the economic empowerment through enabling the subject to become a bread earner for him/her family. In the second phase when the business becomes self-sustaining, we will upgrade the facility already provided through loaning on commercial basis. We will not charge interest. We rather would share the profit to further expand the operations. We in fact have brought this process in line with the cultural and religious sensitivities of this region by relying on profit sharing rather than interest. Q: Have you got any support from any sector as yet?A: In social sector almost everyone who get to know this project, but in microfinance sector only Akhuwat has facilitated us. Dr Amjad Saqib has given the first donation and encouraged us a lot. Actually my mission is to wage war against poverty, deprivation, illiteracy, resulting in terrorism. The only way to get out of this mess is through economic empowerment of those being either forced to commit suicide.
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