Islamic microfinance as an alternative to conventional financing practices : The need to address the poverty in Pakistan

Microfinance has been identified as an important tool that can reduce poverty in developing countries. However, current practices are similar to conventional financing which are traditionally based on debt and price against interest rate. These practices do not effectively alleviate poverty as the m...

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Main Authors:	Abdul Razak, Dzuljastri, Abbas, Kausar
Format:	Conference or Workshop Item
Language:	English English
Published:	2012
Subjects:	HG Finance
Online Access:	http://irep.iium.edu.my/25895/ http://irep.iium.edu.my/25895/1/%28_C_-_8%29_INCIEB_2012_-_FULL_PAPER_195_%28R%29-4.pdf http://irep.iium.edu.my/25895/4/Dr_Dzuljastri_session.pdf

id	iium-25895
recordtype	eprints
spelling	iium-258952013-11-26T06:14:51Z http://irep.iium.edu.my/25895/ Islamic microfinance as an alternative to conventional financing practices : The need to address the poverty in Pakistan Abdul Razak, Dzuljastri Abbas, Kausar HG Finance Microfinance has been identified as an important tool that can reduce poverty in developing countries. However, current practices are similar to conventional financing which are traditionally based on debt and price against interest rate. These practices do not effectively alleviate poverty as the micro entrepreneurs remain indebted throughout the period of financing. Hence, this paper explores the feasibility of Islamic microfinance as an alternative means to help the poor in line with the Shariah principles where the use of riba (usury) is prohibited due to unfairness and injustice. It begins with an overview of poverty, microfinance and its characteristics. This is followed by comparing the differences between conventional financing and Islamic microfinance and various models used. Then its application is discussed in the context of Pakistan. The study is an attempt to explore the emerging area of Islamic microfinance as a means to address the financial hardship facing micro entrepreneurs in order to improve their standard of living. Key words: Debt, Islamic microfinance, riba, poverty, Pakistan. 2012-06-29 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/25895/1/%28_C_-_8%29_INCIEB_2012_-_FULL_PAPER_195_%28R%29-4.pdf application/pdf en http://irep.iium.edu.my/25895/4/Dr_Dzuljastri_session.pdf Abdul Razak, Dzuljastri and Abbas, Kausar (2012) Islamic microfinance as an alternative to conventional financing practices : The need to address the poverty in Pakistan. In: International Conference On Islamic Economics and Business (ICIEB 2012), 29 June - 1 July 2012, A' Famosa Resort Hotel, Malacca. (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG Finance
spellingShingle	HG Finance Abdul Razak, Dzuljastri Abbas, Kausar Islamic microfinance as an alternative to conventional financing practices : The need to address the poverty in Pakistan
description	Microfinance has been identified as an important tool that can reduce poverty in developing countries. However, current practices are similar to conventional financing which are traditionally based on debt and price against interest rate. These practices do not effectively alleviate poverty as the micro entrepreneurs remain indebted throughout the period of financing. Hence, this paper explores the feasibility of Islamic microfinance as an alternative means to help the poor in line with the Shariah principles where the use of riba (usury) is prohibited due to unfairness and injustice. It begins with an overview of poverty, microfinance and its characteristics. This is followed by comparing the differences between conventional financing and Islamic microfinance and various models used. Then its application is discussed in the context of Pakistan. The study is an attempt to explore the emerging area of Islamic microfinance as a means to address the financial hardship facing micro entrepreneurs in order to improve their standard of living. Key words: Debt, Islamic microfinance, riba, poverty, Pakistan.
format	Conference or Workshop Item
author	Abdul Razak, Dzuljastri Abbas, Kausar
author_facet	Abdul Razak, Dzuljastri Abbas, Kausar
author_sort	Abdul Razak, Dzuljastri
title	Islamic microfinance as an alternative to conventional financing practices : The need to address the poverty in Pakistan
title_short	Islamic microfinance as an alternative to conventional financing practices : The need to address the poverty in Pakistan
title_full	Islamic microfinance as an alternative to conventional financing practices : The need to address the poverty in Pakistan
title_fullStr	Islamic microfinance as an alternative to conventional financing practices : The need to address the poverty in Pakistan
title_full_unstemmed	Islamic microfinance as an alternative to conventional financing practices : The need to address the poverty in Pakistan
title_sort	islamic microfinance as an alternative to conventional financing practices : the need to address the poverty in pakistan
publishDate	2012
url	http://irep.iium.edu.my/25895/ http://irep.iium.edu.my/25895/1/%28_C_-_8%29_INCIEB_2012_-_FULL_PAPER_195_%28R%29-4.pdf http://irep.iium.edu.my/25895/4/Dr_Dzuljastri_session.pdf
first_indexed	2023-09-18T20:38:36Z
last_indexed	2023-09-18T20:38:36Z
_version_	1777409213077651456

Islamic microfinance as an alternative to conventional financing practices : The need to address the poverty in Pakistan

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