ISLAMIC MICROFINANCE FOR FARMERS IN PAKISTAN: A CASE STUDY OF THE INNOVATIVE SALAM FORMULA FOR THE WASEL FOUNDATION
This research paper aimed to show the effective contribution of Islamic microfinance in supporting small farmers in Punjab, Pakistan, using the innovative "salam" formula, which provided by Wasel Foundation. To achieve this goal, the descriptive approach wasfollowed, based on data and statistics provided by the Consultative Group to Assist the Poor "CGAP". The most important results were: the financing in "salam" granted a greater role to farmers in Punjab in the decision-making process, because it was well prepared to suit the farmers´ needs and it was innovative in multiple ways, which led to an increase in their yields by 15% to 30% at least, and achieving acceptable profit for the Islamic Microfinance Corporation Wasel.
Keywords: Islamic Microfinance, Salam, Farmers, Pakistan, Wasel Foundation