HBL’s Islamic Banking arm and Akhuwat signed a Memorandum of Understanding (MOU) in Lahore to roll out a program that will provide Shariah-compliant Housing Finance facilities to applicants identified by Akhuwat.
Through this MOU, HBL, the largest bank in Pakistan, will come together with Akhuwat to roll out a program that will provide Shariah-compliant Housing Finance facilities to applicants identified by Akhuwat. The organisation will not only recommend the individuals but will also oversee the construction of houses for the selected applicants. The MoU was signed by Dr. Amjad Saqib, Founder of Akhuwat, and Muhammad Afaq Khan, Head of Islamic Banking, HBL.
Akhuwat, has a solid track record of work on alleviating poverty and empowering socially and economically marginalised families through interest-free micro-finance and by harnessing entrepreneurial potential, capacity building, and social guidance.
HBL is the first bank in Pakistan to have entered into this relationship with Akhuwat, which has a substantially large clientele. This project is in line with the Government of Pakistan’s (GoP) vision of providing affordable housing units to underserved segments of society through Naya Pakistan Housing and Development Authority (NAPHDA). NAPHDA is a special body formed by the GoP and is the biggest government-backed housing program ever attempted.
Regarding this strategic partnership, Muhammad Aurangzeb, President and CEO of HBL stated, “This agreement will help further the Bank’s financial inclusion agenda by helping finance cost effective, sustainable housing units for previously underserved segments of the country. We look forward to working with the professional team at Akhuwat and to play our part in furthering the next phase of Pakistan’s economic development.”
“Akhuwat Islamic Microfinance is happy to work with HBL, the largest bank in Pakistan, for provision of low-cost houses for poor and needy. Through this collaboration, we intend to support the poor to build their own houses,” said Dr. Amjad Saqib.