Global Advanced Research Journal of Management and Business Studies (ISSN: 2315-5086) October 2015 Vol. 4(9), pp 357-362

Copyright © 2015 Global Advanced Research Journals   

Original Research Articles

Microfinance: Effective in Generating Opportunities and Mitigating Poverty in Pakistan

Dr. Sarah Wali Qazi¹, Prof Aurangzeb², Saima Hussain³

¹Assistant Professor, Shaheed Zulfiqar Ali Bhutto Institute of Science and Technology, Karachi Email: Sarawali.qazi@szabist.edu.pkTel: 0092334-3141816

²Professor, Sindh Madressatul Islam University, Karachi Email: azeb@smiu.edu.pk

³Assistant Professor, Shaheed Zulfiqar Ali Bhutto Institute of Science and Technology, Karachi Email: Saima.hussain@szabist.edu.pk

Accepted 04 September 2015

Abstract 
 

Microfinance is the tools used to mitigate poverty, create opportunities and develop economies. Microfinance and microcredit are not only help poor residents of the country but also supports empowerment of women, encourages equality and give them an opportunity to live a better life. The study determines the impact of Microfinance in alleviating poverty, how efficient and effective strategy it is in enhancing the incomes and wellbeing of microcredit clients. It also investigates the protracted influence of microfinance programs on recipients, their accessibility to health services, and education for their children, and the improvement in their families’ consumption levels, and increment in their income level. In-depth interviews of the managers and field mangers having one year experience in the respective field of six of thirteen microfinance institutions in Karachi is conducted using hybrid questionnaire; semi structured questions consist of both open and close ended questions. Secondary data is collected from past literature, articles, newspapers and websites of Microfinance banks and institutions. After content analysis of in-depth interviews we reached on the conclusion that microfinance has created opportunities in terms of employment generation, improvement in income, generation of more economic activities and women empowerment whereas we have not find any empirical results about alleviation of poverty.

Keywords: microcredit, economic development, poverty alleviation, enhhanced living patterns.