Abstract:
Microfinance has emerged as one of the most effective strategies for combating
poverty in the developing countries. Since its introduction in the Bangladesh in the
form of Grameen Bank, it has been adopted in different developing countries for
poverty alleviation and providing the poor with credit and finance in order to increase
their earning capacity and improve their living standard.
This study aimed at finding the role of three microfinance institutions including Kashf
Foundation, Tameer Microfinance Bank and Khushhali Microfinance Bank, operating
in Pakistan, in poverty alleviation as well as rural development. Positivist philosophy
was selected to collect primary data through face to face interviews on the basis of a
structured and close ended questionnaire. The sample of managerial staff of these
organizations was taken by following purposive and convenience sampling. Primary
data was subjected to univariate and bivariate statistical analysis through Statistical
Package for Social Sciences.
The results showed that microfinance organizations under study were playing
positive role in alleviating poverty from Pakistan and enhancing development in the
rural areas of the country. Different factors including the main objectives of the
organizations, major focus areas, purpose of giving microfinance, different activities
for reducing poverty like education facilities, technical training and health insurance
and range of the loans provided to the poor people showed that these organizations
aimed at poverty alleviation and did play effective role in enhancing per capita
income in rural as well as urban areas. The results of the data analysis were presented
graphically and interpreted in the light of the literature review. The results were
substantiated and supported by literature review and showed that different activities of
microfinance organizations helped in rural development and reduction in the poverty
in rural and urban populace.
