Akhuwat is an innovative approach to microcredit currently implemented in Pakistan. It is a home-grown (vs Washington-imposed/recommended) innovation that aims to remedy the current shortcomings of for-profit microcredit. This book is the first systematic conceptual, institutional and empirical study of the organisation. It places it in the context of microcredit and examines its values as an Islamic alternative. Akhuwat has been hugely successful in numbers. It has been offering interest free microcredit to 1.5 million households since the founding of the organisation in 2001. This in turn has had some effect on the macroecomomic level, such as credit, labor and product markets. By identifiying several key features of the Akhuwat model and its social and economic philosophy, the authors put forward the argument that it could be replicated in other contexts where either Islamic values that forbid profiting from interest or failures of the current microcredit approach may be limiting reliance on microcredit as a poverty-reduction strategy. This book will be of interest to scholars of poverty and development economics in general and microcredit in particular.