Visits to Zakat & Ushr, Auqaf and Religious Affairs Departments, Govt of Punjab; Meetings at Akhuwat Foundation

A delegation from IPS visited Lahore as part of its study on Islamic Social Finance for Social Protection on July 18-19, 2022 and held meetings with the officials of Zakat & Ushr Department and Auqaf & Religious Affairs Departments of the Govt. of Punjab, as well as the founder and executive director of Akhuwat Foundation Dr Amjad Saqib.

The IPS’ delegation comprised Dr Salman Ahmed Shaikh, principal investigator, Islamic Social Finance for Social Protection Study, Dr Anwar Shah, co-principal investigator, Islamic Social Finance for Social Protection Study, Naufil Shahrukh, general manager operations, IPS, Muhammad Wali Farooqi, research officer, IPS and Mir Afzal, junior research associate at IPS.

The visiting delegates met Babar Aman, secretary, Zakat and Ushr Department and Muhammad Sajjad Babar, administrator, Zakat and Ushr Department on July 18-19, 2022. During the discussion, the structure, administration and operations of the Department were discussed. The problems in Zakat administration were highlighted including lack of funds given the high poverty rate, political involvement in administration, one-time allocation only in a year, trust deficit between people and government, lack of awareness in people about rules of Zakat and blanket exemption allowance which decreases Zakat coverage.

The initiatives taken by the Department to digitize data and disbursement and allocating funds towards vocational training were highlighted. The future steps to engage in voluntary collection efforts, creating awareness using testimonials and short documentaries and encouraging incentive-linked voluntary payment of Ushr were also discussed.

IPS team and officials of the Zakat and Ushr Department agreed to further collaboration in sharing ideas and the Secretary, Zakat and Ushr Department, Punjab welcomed proposals to help in effective management and administration of Zakat and Ushr system in Punjab.

The IPS team also visited the head office of Auqaf and Religious Affairs Department of Punjab on July 19, 2022, where the core structure, functions and operations of the Auqaf and Religious Affairs Department were discussed at length. The process of auction of cash donation boxes and leasing of properties including shops and agricultural land were discussed. The officials also informed about how liquid investments are placed through banks. It was revealed that the core aim of the Department is to manage endowed properties and protect them from usurpation and disputes. Social welfare and protection was not the focal point. However, Data Darbar hospital, fourteen dispensaries, one primary school and several Madaris operate under Auqaf and Religious Affairs Department. Revenues come in the form of rents, cashbox donations, contract fees and return on financial investments.

The Auqaf and Religious Affairs Department on the occasion was represented by Additional Secretary Dr Ahmad Afnan, Deputy Director Dr Abdul Ghafoor, Section Officer (General) Abdul Sattar, Deputy Director (Admin) Asif Ejaz, Deputy Director (Estate-II) Azeem Hayat and Assistant Director (Accounts) Jahangir Ali.

Finally, the IPS team visited Dr Amjad Saqib at Akhuwat Foundation on July 19 after visiting one of their branches near Delhi Gate, Lahore earlier on Jully 18, 2022. During the visit of Akhuwat 500, a branch of the foundation, the team interacted with clients, and reviewed documents of completed cases, whereas the branch manager Mohammad Ramzan briefed about the process of loan approval, screening, monitoring and recovery.

In the meeting with Dr Amjad Saqib at Akhuwat Parwaaz branch, the different programs and initiatives of Akhuwat Foundation were discussed. Dr Amjad Saqib explained how the Foundation has scaled its programs successfully by focusing on trust, brotherhood, professional excellence and engaging in effective public private partnerships. He recommended that the Foundation’s outreach can further increase if provincial government of other than Punjab province also join hands and leverage the expertise, on ground presence and network of Akhuwat Foundation.