From Laborer to Entrepreneur: How HDF's plans changed lives

Muhammad Hanif, 28, lives in the village of Usman Solangi. He says his is one of the biggest shops in and around Shamsabad. He set up his business with a Rs50 000 ($US 850) loan he got from the Human Development Foundation (HDF) nine months ago under its Economic Development Program.

Hanif was employed by a local landlord and worked for a meager wage. On the side he would sell children's goods loaded on a handcart. Hanif's older brother, Muhammad Nawaz, diverted him to his current business. Nawaz is also a beneficiary of HDF's economic development program.

"I had trouble meeting my monthly expenses," says Hanif. "One day, my brother told me about HDF's loan program. I met the president of the local development organization and asked for a loan of Rs50000 so I could expand my hand-cart to a proper shop," he said. "The president assured me he would consider my request."

Every village in which HDF runs a project has a development organization (DO). It is made up of 10 residents, including elders, and supervises and monitors the projects in its jurisdiction.

The HDF provides a loan to someone only after he or she has been approved by the local DO.

"I was not very hopeful," says Hanif, with a wide smile. "One day, the DO president, Khalil Haider, came to my home and told me my loan had been approved. I could not believe it. He said,'Hanif, go and open a bank account. You will be receiving Rs 50 000.'"

Currently, Hanif nets Rs300 daily. He has been paying Rs1 740 in monthly installments to HDF.

Noor Muhammad is another villager with a happy story. He is a farmer from the village of Wikhyo Khaskheli. He borrowed Rs5 000 twice in the last 12 months to buy fertilizer.

"I paid off the first loan two months ago and have borrowed Rs5 000 again for the same purpose," Noor Muhammad said. "I made a profit of Rs40 000 last year. I am expecting to make the same profit this year too."

Ali Hassan, a resident of Somar, took out a loan of Rs16 000 four months back and bought a buffalo. Presently, he is selling milk to the people of nearby villages and earns Rs1 500 to Rs2 100 monthly. Ali Hassan pays Rs1 237 in monthly installments.

HDF's short-term loans have enabled many people to turn their lives around and stop the cycle of "hand-to-mouth" living. "(With the HDF loan) I rented this shop and now my business is roaring." Hanif says. "I am really grateful to HDF."