Microfinance In Pdf

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Microfinance is used as a tool to alleviate poverty and help poor and empowerment of female members of the society. There are several microfinance institutions (MFI‘s), microfinance banks (MFB’s), NGO‘s, and many other welfare trusts that are active for alleviation of poverty. Other institutions such as State Bank of Pakistan (SBP), Pakistan Microfinance Network (PMN), and Pakistan Poverty Alleviation Fund (PPAF) are also active in this field and making their efforts for development of our economy.

In Pakistan about 33% to 35 % people are at below poverty line i.e. one third of the population don’t have financial resources to meet even their basic needs which is depicting a very adverse situation of society. Microfinance is an emerging concept in Pakistan it at its initial stage. The government of Pakistan, State bank of Pakistan, other foundations such as First Microfinance bank, Kashf Foundation and Kashf Microfinance Bank, Tameer Microfinance bank, Akhuwat, Khushhali Bank etc. is operating in the field of microfinance but still there are at initial stage and facing a lot of challenges.

Like other developing countries microfinance is used as poverty alleviating tool/strategy in Pakistan. Microfinance and microcredit is not an only tool to help poor residents of the country but also help to empower women and encourage equality and give them an opportunity to live a better life. Microfinance loans help poor’s in meeting their basic needs, facilitating them to be educated, living a healthy life, boosting self esteem, and empowerment and in making their relationships sustainable within their society.

The research project’s motive is to determine the impact of Microfinance strategy to alleviate poverty, how helpful and effective...

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In simple word poverty is deficiency of financial resources to meet basic needs. As stated in Smith (1776, p.21) “every man is rich or poor according to the degree he can afford to enjoy the necessaries, convenience and amusement of human life”.
Poverty has two concepts: the traditional and the monetary concept. Traditional concept is an individaulas ability tomeet his/her basic needs such consumption of food etc. the monetary concept include other materialist aspacts like shelter, health, education, freedom of speech and security (Haughton & Khandker, 2009). It can be defined as “state of deprivation in wellbeing” (World Bank, 2000, chap. 1); where wellbeing includes both concepts of poverty materialistic as well as non materialistic. According to Amartya Sen (1987 in Haughton & Khandker, 2009) it is the competence of an individual to function in the society.

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