Towards achieving social and financial sustainability: A study on the performance of microfinance in Pakistan

Analyses the performance of microfinance sector of Pakistan in fulfilling its dual objective social uplift and achieving financial sustainability. The main focus of this report has been the performance of microfinance industry in Pakistan with specific focus on both supply and demand side issues. insight into the key findings of the survey. Moreover, it has also reviewed the impact of microfinance on child labour among poor families.

While economies around the world have experienced high growth and financial systems have undergone major transformation, a significant number of people especially in the developing countries do not have access to finance. Policy makers have increasingly promoted the use of microfinance as a tool to eradicate poverty and implement financial inclusion strategies.

Pakistan being a developing country is no exception to this, having a large number of people that are poor with limited recourse to livelihood. Though limited in its scope, microfinance in Pakistan, has been able to bring some of the large number of unbanked people into the banking network and has also helped in improving their socioeconomic condition.