Gilgit (Exclusive report by C.R Akbar Shah): According to reliable sources, Akhuwat, a non-governmental organization renowned for providing interest-free loans to small businesses, has decided to close its six branches in Gilgit-Baltistan.
The organization will also layoff its employees, who have dedicated years to their service on meagre salaries.
For the past three months, loans have not been provided to business community, citing the reason of insufficient budget and funds.
Efforts are underway to merging all branches within Gilgit town into a single office, a move that has left both employees and entrepreneurs deeply disheartened and filled with a sense of dispair.
Previously, the Akhuwat had made the decision to shut down one of its branches in Nagar and another in Yasin. However, owing to a strong public reaction along with threats of non-payment of loan, the organization finally had to reverse it’s decision.
It is pertinent to note that Akhuwat has a long history of collaborating with the government, and it has enjoyed government support throughout its years of operations in Gilgit-Baltistan.
According to credible sources, the Akhuwat is facing a lack of funding from G-B government due to the ongoing economic crisis. However, it is also being claimed that Akhuwat possesses large financial resources and the potential to efficiently sustain its operations without relying on government funding.
It is also being supported by philanthropists and various institutions. In its initial phase, Akhuwat provided loans using its own resources.However, it was formally provided funding by the G-B government through it’s self-employment program.
Thousands of people in Gilgit-Baltistan were engaged in their entrepreneurial pursuits by availing interest-free loans from the Akhuwat. Now, with the suspension of loan provision, commercial have come to a standstill, resulting in a surge of joblessness.
In the region of Gilgit-Baltistan, two notable organizations, namely the Akhuwat and the Muwakhat institution associated with Jamaat-e-Islami, stand out for their provision of interest-free loans within a non-interest framework.
Akhuwat has a substantial workforce, including both entrepreneurs and hundreds of employees. Previously, the employees received minimal compensation in form of salaries.
However, a new strategy has been formulated to reduce the workforce significantly. Regrettably, this choice by Akhuwat is anticipated to exacerbate the unemployment situation in Gilgit-Baltistan.
It is also being claimed that Akhuwat has consistently avoided losses owing to an enhanced recovery rate. Throughout its operations, it has received commendable cooperation from small business owners. Consequently, there exists no legitimate or ethical basis to justify the closure of branches, employee layoffs, or the offering of inadequate wages to the staff.
According to the business community of Gilgit-Baltistan, there is a dire need of an organization like Akhuwat, which furnishes interest-free loans within Gilgit-Baltistan. If the institution is really suffering from financial crisis,, then the government should immediately allocate funds to sustain the continuity of the program.
