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

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.”

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.

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.

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?

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

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

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

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

Today is history now and tomorrow is waiting for future endouvres