Editing Microcredit (section)

===Pakistan===
Microcredit initiatives in Pakistan have developed significantly over the past several decades, evolving from early cooperative lending models to large-scale institutional frameworks.<ref name=":5">{{Cite journal |last=Shah |first=Dr. Syed Abrar Hussain |last2=Langrial |first2=Prof. Dr Altaf Hussain |last3=Mahmood |first3=Dr. Hafiz Muhammad Hassan |title=Micro Financing in Pakistan: A Historical Study |url=https://www.researchgate.net/publication/387541304_Micro_Financing_in_Pakistan_A_Historical_Study_Micro_Financing_in_Pakistan_A_Historical_Study |journal=Quarterly Research Journal “Al-Marsoos” |volume=2 |issue=4 |via=Research Gate}}</ref> The first major microcredit initiative in the region was the [[Comilla Model]], introduced in the 1950s by [[Akhtar Hameed Khan]] in East Pakistan (now Bangladesh).<ref name="Bateman 2010" /> The Comilla Model was designed to address rural poverty through group-based lending and village cooperatives, aiming to empower small farmers by providing access to credit without traditional collateral.<ref name="Bateman 2010" /> While the model initially showed promise, it faced challenges due to bureaucratic interference, mismanagement, and power imbalances within borrower groups, ultimately limiting its long-term impact.<ref name="Bateman 2010" />

Following the separation of Bangladesh in 1971, microcredit efforts in Pakistan evolved independently, influenced by both global microfinance trends and local economic conditions. In 2001, the establishment of '''Akhuwat''' marked a significant shift in microcredit philosophy within Pakistan.<ref name=":3">{{Cite news |date=2024-09-22 |title=Home - Akhuwat.com.pk |url=http://www.akhuwat.com.pk |archive-url=http://web.archive.org/web/20250328215835/https://akhuwat.com.pk/ |archive-date=2025-03-28 |access-date=2025-05-08 |work=Akhuwat.com.pk - One Stop Solution for Akhuwat Loans |language=en-US}}</ref> Founded by '''Dr. Amjad Saqib''', Akhuwat operates on a unique interest-free lending model funded entirely by donations and community support.<ref name=":3" /> The organization disburses loans to low-income borrowers through a network of mosques and community centers, promoting principles of social justice and financial inclusion. Akhuwat has provided over PKR 200 billion in interest-free loans to more than 4.5 million families as of 2024, positioning itself as one of the largest microfinance institutions in the country.<ref name=":3" /><ref name=":4">{{Cite journal |last=Bashir |first=Mohsin |last2=Saleem |first2=Ashar |last3=Ahmed |first3=Ferhana |date=2019-03-01 |title=Akhuwat: Measuring Success for a Non-profit Organization |url=https://journals.sagepub.com/doi/10.1177/0972820119825973 |journal=Asian Journal of Management Cases |language=EN |volume=16 |issue=1 |pages=100–112 |doi=10.1177/0972820119825973 |issn=0972-8201}}</ref>

Akhuwat’s success has been attributed to its emphasis on community engagement and its rejection of interest-based lending, aligning its model with both Islamic finance principles and conventional microcredit structures.<ref name=":4" /> Borrowers are required to repay only the principal amount, fostering a culture of mutual support and accountability.<ref name=":4" /> Akhuwat also offers social services such as educational scholarships, housing loans, and small business training to further enhance economic stability among beneficiaries.<ref name=":4" />

Microcredit initiatives in Pakistan have developed significantly over the past several decades, transitioning from cooperative lending models to formalized institutional frameworks.<ref name=":5" /> While Akhuwat is a notable example of interest-free microfinance, other organizations have also contributed to the sector.

[[Kashf Foundation]], established in 1996, was one of the first microfinance institutions in Pakistan to focus on women’s economic empowerment through microloans. The organization has expanded its services to include microinsurance and financial literacy programs.<ref>{{Cite web |title=Kashf Foundation |url=https://kashf.org/ |access-date=2025-05-13 |website=kashf.org}}</ref>

Khushhali Microfinance Bank (KMBL), founded in 2000 as part of the Microfinance Sector Development Program, provides microloans, agricultural credit, and digital banking services. KMBL operates as a for-profit institution and focuses on small business lending.<ref>{{Cite web |title={{!}} Khushhali Microfinance Bank |url=https://khushhalibank.com.pk/ |access-date=2025-05-13 |website=khushhalibank.com.pk}}</ref>

The National Rural Support Programme (NRSP), launched in 1991, is the largest rural development initiative in Pakistan. NRSP offers microloans alongside agricultural training and infrastructure development for low-income households.<ref>{{Cite web |title=National Rural Support Programme |url=https://nrsp.org.pk/ |access-date=2025-05-13 |website=nrsp.org.pk}}</ref>

The Pakistan Poverty Alleviation Fund (PPAF), established in 2000, functions as an apex institution that allocates funds to partner organizations involved in poverty reduction through microcredit, asset transfers, and community-based projects.<ref>{{Cite web |title=Home {{!}} Pakistan Poverty Alleviation Fund |url=https://www.ppaf.org.pk/ |access-date=2025-05-13 |website=www.ppaf.org.pk}}</ref>

Despite the expansion of microcredit in Pakistan, challenges such as operational costs, outreach in remote areas, and regulatory constraints remain prevalent.