Abstract:
Microfinance provides small loans to poor people and small enterprises. This is the best
way of removing poverty. This research provides an overview of the role and
performance of microfinance in Pakistan. The major objective of the study is to show the
Microfinance sector performance and impact of the microcredit on the different poverty
levels. This study is based on qualitative methods in Order to answer the thesis questions.
The result of the study was that microfinance helps in the poverty reductions of different
categories of poor people and has the positive effects on their living standards. It was
found that there is a high interest rate on micro loans because of the administrative cost.
We discovered that there are three types of organizations that provide services of
microfinance in Pakistan. The Government takes interest and supports the microfinance
sector and of their main initiative is microfinance ordinance 2001. It was observed that
there is improvement in the microfinance sector in the recent years in terms of
investments, active borrowers, branches and personnel.
