How Islamic microfinance can help during COVID-19 situation? and AlHuda (CIEMF) plans toward it.

Byline: Qirate Khan

Poverty has occupied foremost place on human development agendas of almost all countries of the world as its prevalence dates back to the existence of human being. The Islamic banks and the Islamic windows of conventional banks pursue robust promotion of Islamic micro finance for faster poverty eradication with deeper, wider financial inclusion. Islamic microfinance involves Shariah compliant way of financing and providing credit without collateral or any property for guarantee to the marginally poor for their business, thus is a popular tool employed as part of a poverty reduction strategy, empowering and increasing the productivity of poor, giving social benefits to them in a sustainable way, and aiding economic development. Recently the pandemic (COVID-19) has taken over the world. Worldwide 7,624,618 million cases have been reported till date (12th June) with recovery of 3,862,565 cases and deaths of 424,383. This indicates the signs of upcoming depression that might hit the world once it is over.

History has been evident of high death rates caused by nothing but the infectious diseases. Covid-19 shows how endangered we humans are and how the pandemics have caused deaths in the past and what damage can it cause in the future as well. Corona virus disease (COVID-19) is an infectious disease caused by a newly discovered virus. Mostly people who fall sick with this disease will experience mild to moderate symptoms and recover without special treatment. The virus that causes COVID-19 is mainly transmitted through droplets generated when an infected person coughs, sneezes, or exhales. These droplets are too heavy to hang in the air, and quickly fall on floor or surface, infecting those who touch a contaminated surface and then their eyes, nose or mouth.

Every sector and thus the organization/company is expected to play its role and contribute in the hard times to either eradicate or dilute the effects of economic crises that in the current situation might occur because of the COVID-19. Similarly, we all know that Islamic Microfinance was established to cater to the needs of the needy and underprivileged community, operating based on the Shariah principles. Islamic Microfinance is as an essential tool in supporting and strengthening the economy at the bottom of the socio-economic pyramid by facilitating access to financial services for the poorest and the destitute. The strict prohibition of paying or receiving any fixed...