Abstract:
The concept of “Microfinance” in Pakistan today is being performed with dual
aim of socio-economic development of nation i.e., providing better financial
opportunities for people living in poverty and a more financially stable and
growing sector. Keeping in mind these objectives, this study aims at investigation
of the current practices and performance of microfinance institutes in Pakistan
including Microfinance Banks (MFBs), Rural Support Programs (RSPs) and other
Microfinance institutes (MFIs). With the rising inflation, worse security
conditions, economic slowdown due to less local and foreign investments, elite
and ethnic polarization , natural disasters and the fact that microfinance industry
in is its take off position in Pakistan, it becomes very essential to monitor its
performance. This research will be empirical and based on quantitative data of 15
MFIs taken as a sample for measuring performance. The study will employ
dynamic panel data model by including sample data for five years (2006-10) to
test causal relationship between different performance indicators and hypotheses
developed to have a better view to evaluate and comment on the current
performance of sector.
