Awqaf System for Sustainable WASH Services in Developing Countries: A Viable Alternative to Donor-Dependent Models

Abstrak

Abstract: Access to safe drinking water, adequate sewerage systems, and
reliable hygiene services (WASH) infrastructure is fundamental to public
health and socio-economic development. In many developing countries like
Pakistan, however, WASH services are often underfunded and heavily
reliant on external donors. Financing from the funding agencies is
mounting the amount of public debt in these countries and enhancing the
size of already existing twin deficit. This paper proposes the utilization of a
system of Awqaf (Islamic endowment model) as a sustainable and
community-driven alternative to external loans or aid. It also explores the
viability of integrating a revitalized system of Awqaf as a sustainable
financing and governance model for WASH infrastructure. Unlike donorbased models, the Awqaf approach is rooted in local culture, encourages
community ownership, and can provide long-term, debt-free funding
through self-sustaining endowment mechanisms. The theoretical
framework of the study links financial innovation (waqf-based instruments
such as cash waqf, waqf sukuk, and blended waqf–PPP models) with
financial inclusion, arguing that this connection can strengthen service
sustainability and fiscal stability. This policy research compares Awqafbased initiatives with conventional donor-funded WASH projects using
selected case studies, and assesses their performance in terms of
sustainability, equity, cost-effectiveness, and institutional resilience.
Findings suggest that, with proper legal and administrative frameworks, the
Awqaf model can complement or, in some contexts, substitute
international funding while strengthening local governance structures. This
system could play a pivotal role in achieving sustainable development goals
related to water and sanitation in the Global South.
Keywords: waqf, WASH, sustainable development, donor dependency.