Poverty Eradication in Pakistan through Micro Financing

Abstract

Microfinance is a type of banking service provided to unemployed or low-income individuals or groups who otherwise would have no other access to financial services and are in need of some type of financial aid. The main purpose of microfinance is to provide loans to the under privileged people, in both rural and urban areas. The aim of this study is to observe the significant role of microfinance institutions in the reduction of poverty in Pakistan, using different cross-sectional data. A survey was conducted in which 230 people participated from 2 microfinance institutions in Islamabad, the First Microfinance Bank Ltd and Mobilink Microfinance Bank. I used simple descriptive analysis on my questionnaire, and this helped me get a detailed understanding of the responses of the respondents. The methodology for conducting this research included the mixed methods research that involves the collection, integration and analyzing of both qualitative and quantitative data. The results have suggested that there is a positive effect of microfinance on poverty reduction