Mixing Finance With Religion in Pakistan

Thousands of Pakistani households are turning to microfinance institutions which provide loans based on Islamic law, or Sharia. The following video courtesy of the Wall Street Journal looks at micro financing solutions in Pakistan provided by Achuwat which provides interest free loans.

Religious lending is expected to grow in the coming years, and this video looks at case studies of a school teacher and tailor. The majority of clients of micro financing solutions are women.

Micro financing and micro credit gained mainstream attention in 2006 by the awarding of the Nobel prize to Muhammad Yunus, a Bangladeshi social entrepreneur, economist and civil society leader “for efforts through microcredit to create economic and social development from below”.

Photo/Video: Haider Ali for The Wall Street Journal. Video Length 7.50 minutes.