Social Economic Social Economic Development Development

Based on Akhuwat ParadigmBased on Akhuwat Paradigm

Success Story Success Story

Wan Miana, Tehsil Kot MominWan Miana, Tehsil Kot Momin

District SargodhaDistrict Sargodha

Sequence of PresentationSequence of Presentation

Ranjha Farms in 1997Ranjha Farms in 1997 Financial CrisisFinancial Crisis Labor ProblemsLabor Problems Challenges for ManagementChallenges for Management Options availableOptions available Decisions, their basis & outcomeDecisions, their basis & outcome Ranjha Farms todayRanjha Farms today InfrastructureInfrastructure

Sequence of PresentationSequence of Presentation

Financial improvementsFinancial improvements Improvements in Labor conditionsImprovements in Labor conditions Ripples within the villageRipples within the village Response Response Road AheadRoad Ahead Future plansFuture plans ConclusionsConclusions

Historical PerspectiveHistorical Perspective

Prevalent Social ConditionsPrevalent Social Conditions

Prevalent Economic ConditionsPrevalent Economic Conditions

Ranjha Farms in 1997Ranjha Farms in 1997

100 acres100 acres 60 acres kinno orchard 60 acres kinno orchard 40+ acres of Wheat / Rice40+ acres of Wheat / Rice 40+ Cattle heads40+ Cattle heads Two Ice factoriesTwo Ice factories One Oil MillsOne Oil Mills Two cold storagesTwo cold storages

Financial SituationFinancial Situation

Annual Revenues less than 1.5 MAnnual Revenues less than 1.5 M Heavy loansHeavy loans PSIC loan more than 4 MPSIC loan more than 4 M Personal Loans + 5 MPersonal Loans + 5 M ADBP,HBL and Cooperative loansADBP,HBL and Cooperative loans Default and decrees issued by courts Default and decrees issued by courts

in favor of various banksin favor of various banks Annual interest more than .5 M per Annual interest more than .5 M per

annumannum Very survival and existence were in Very survival and existence were in

questionquestion

Labor Conditions Labor Conditions

Hereditary workersHereditary workers Meager PaysMeager Pays Only paid in kind 8 maunds of rice and Only paid in kind 8 maunds of rice and

wheat each after six monthswheat each after six months Monthly less than Rs. 500 PMMonthly less than Rs. 500 PM Two uniforms per annumTwo uniforms per annum To have a worker the management To have a worker the management

had to pay 20,000 – 30,000 per had to pay 20,000 – 30,000 per person which was never repaidperson which was never repaid

Workers availability were getting Workers availability were getting sporadicsporadic

Labor Conditions Labor Conditions

The amount always stayed in The amount always stayed in booksbooks

Lack of availability of workers, Lack of availability of workers, their increasing demands, and their increasing demands, and lack of their commitment lack of their commitment towards the farmtowards the farm

Challenge for ManagementChallenge for Management

Survival & existence doubtfulSurvival & existence doubtful

To improve the farm, Capital was To improve the farm, Capital was requiredrequired

Due to default, the capital sources Due to default, the capital sources were getting limitedwere getting limited

From where to get capital?From where to get capital?

Options AvailableOptions Available

Sell off the landsSell off the lands

oror

Leave urban life and shift to Leave urban life and shift to farm to manage it more farm to manage it more effectivelyeffectively

Start of the DawnStart of the Dawn

Following the Islamic PrinciplesFollowing the Islamic Principles

Abolition of InterestAbolition of Interest

Reducing the Cost of interest expensesReducing the Cost of interest expenses

Abolition of Slavery and Bonded LaborAbolition of Slavery and Bonded Labor

DecisionsDecisions

December 1999 (15December 1999 (15thth Shaaban) Shaaban) All the loans to workers were written All the loans to workers were written

offoff Amounting around Rs.150,000Amounting around Rs.150,000 Commitment not to give any further Commitment not to give any further

loans in futureloans in future Pays were monetizedPays were monetized Cash paid instead of cropsCash paid instead of crops No further loans from banksNo further loans from banks

OutcomeOutcome

Salaries were paid in cash instead of Salaries were paid in cash instead of kindkind

Gradual increase from 500 to 2000 PMGradual increase from 500 to 2000 PM

Less land under wheat or rice cultivationLess land under wheat or rice cultivation

The land under wheat became available The land under wheat became available for Kinno orchards- much more profitablefor Kinno orchards- much more profitable

OutcomeOutcome Increase in production and rate of KinnoIncrease in production and rate of Kinno

Fodder for Live stock secondary crop Fodder for Live stock secondary crop

Substantial enhancement in livestock Substantial enhancement in livestock headsheads

Availability of substantial quantity of Availability of substantial quantity of Green ManureGreen Manure

In house & cheap inputIn house & cheap input

Ranjha Farms todayRanjha Farms today

125 acres125 acres Wind fall of additional 25 acres Wind fall of additional 25 acres Land recovered from old river bedLand recovered from old river bed 100 acres Kinno orchard100 acres Kinno orchard 50 acres fodder as additional crop50 acres fodder as additional crop 125+ live stock providing milk, 125+ live stock providing milk,

siblings and organic fertilizer siblings and organic fertilizer

Ranjha Citrus FactoryRanjha Citrus Factory 67 % of industrial ventures were 67 % of industrial ventures were

sold but the revenues are more sold but the revenues are more when 100% were ownedwhen 100% were owned

Establishment of Ranjha Citrus Establishment of Ranjha Citrus FactoryFactory

6000 MT production Capacity 6000 MT production Capacity 1000 MT Capacity of Cold Storages1000 MT Capacity of Cold Storages Projections for next year exportsProjections for next year exports 100 M100 M Ranjha Citrus registered brand of Ranjha Citrus registered brand of

kinnokinno

InfrastructureInfrastructure

Tube wells Tube wells 3 3 Bio Aabs Units Bio Aabs Units 3 3 Brick lined water coursesBrick lined water courses Electricity availability on FarmsElectricity availability on Farms Mettelled RoadsMettelled Roads Huge battery of workers available Huge battery of workers available

due to comparative high salaries and due to comparative high salaries and human treatmenthuman treatment

Human TreatmentHuman Treatment

Treat other the way you wish to Treat other the way you wish to be treatedbe treated

No threats, abuses, or No threats, abuses, or punishmentspunishments

Financial PositionsFinancial Positions

All loans from PSIC, Banks etc All loans from PSIC, Banks etc have been paidhave been paid

Interest Free operationsInterest Free operations Process of repayment of Process of repayment of

personal loans is on waypersonal loans is on way Total repayment will be Total repayment will be

complete inshallah by 2009 endcomplete inshallah by 2009 end

RevenuesRevenues

Orchards 5 M plusOrchards 5 M plus Wheat Wheat 0.3 M 0.3 M Dairy Farm self sufficientDairy Farm self sufficient Additional Live Stock sales 0.5 MAdditional Live Stock sales 0.5 M Income from Factories 0.4 MIncome from Factories 0.4 M Projections for next year 1 MProjections for next year 1 M

Package for Labor Package for Labor

Monthly pay 2,000 PMMonthly pay 2,000 PM 40 kgs of wheat and rice as food 40 kgs of wheat and rice as food

support support Valuing 450 PMValuing 450 PM Three uniforms annuallyThree uniforms annually Three pairs of shoesThree pairs of shoes One Ltr of Milk daily Rs 600 PMOne Ltr of Milk daily Rs 600 PM

Package for Labor Package for Labor

Rs 300 PM free vegetablesRs 300 PM free vegetables

300 oranges per head 300 oranges per head

Housing rights to workers along with right Housing rights to workers along with right to sellto sell

Total Package around 3,500 PMTotal Package around 3,500 PM

Introduction of Akhuwat interest free Micro Introduction of Akhuwat interest free Micro loansloans

ResponseResponse

No shortage of workersNo shortage of workers Willingness and commitment Willingness and commitment

increasedincreased Well being of workers and their Well being of workers and their

familiesfamilies Introduction of Liberation Introduction of Liberation

PackagePackage

Ripples within the villageRipples within the village

Resentment shown by other family Resentment shown by other family membersmembers

Opposition to Liberation PackageOpposition to Liberation Package

Accusing to destroy the labor marketAccusing to destroy the labor market

Other farms have minimum availability of Other farms have minimum availability of workersworkers

Road AheadRoad Ahead

Salary package Rs 4000 by end 2008Salary package Rs 4000 by end 2008

Educational Allowance for childrenEducational Allowance for children

Medical insurance for all the employees Medical insurance for all the employees in collaboration with NRSPin collaboration with NRSP

Akhuwat Live stock loans SEEP for Akhuwat Live stock loans SEEP for workers families to additional incomes workers families to additional incomes

Road AheadRoad Ahead

USAID is getting involved for Dairy USAID is getting involved for Dairy Farms up gradationFarms up gradation

Protection against tyrannyProtection against tyranny

Availability of justice against Availability of justice against oppressionoppression

Future PlansFuture Plans

Marketing among the diplomatic circlesMarketing among the diplomatic circles

Introduction of Organic kinnoIntroduction of Organic kinno

Capacity building of workers for pluckingCapacity building of workers for plucking

25 acres orchard of Guava, dates and 25 acres orchard of Guava, dates and Bamboo grovesBamboo groves

ConclusionsConclusions

Following the principles of Islam of Following the principles of Islam of abolition of interest and bonded labor abolition of interest and bonded labor (slavery)(slavery)

We can bring prosperity, well being We can bring prosperity, well being and welfare not only to the life of and welfare not only to the life of those who work on our farms but also those who work on our farms but also ensure prosperity for over selves ensure prosperity for over selves

Win - Win for AllWin - Win for All It will be translated in much better It will be translated in much better

results for our selvesresults for our selves Need to replicate this modelNeed to replicate this model

ConclusionConclusion

If we are merciful to those living on If we are merciful to those living on earth, Allah will be merciful on us earth, Allah will be merciful on us from Heavenfrom Heaven

Thank YouThank You