Abstract:
Purpose: The concept of microfinance sector has been progressing with foreign investment
within the economy with the evidence that microcredits has been showing increasing trend in its
utilization. The image of microfinance has been getting popularity in our society. The overall
scenario has raised a question that is it really microfinance sector successful in controlling the
poverty within the economy as per its objective or the case is reciprocal. This study is solely
designed to capture poverty alleviation role of microfinance sector by focusing on the case of
Karachi due to limitation of resources.
Methodology/sample: Research methodology utilized during this study is descriptive in nature
which has both qualitative and quantitative aspects of research. The sample size selected for this
study is based on 100 respondents. The decided number of successful questionnaire filled on
field from different areas in Karachi with the support of field staff of microfinance sector. The
software used to analyze the data is SPSS.
Findings: Cronbach alpha test is used to check the authenticity of the sample responses along
with this graphical analysis is added in this study to visualize different aspects of the research
study. Mainly Pearson correlation is used to test either microfinance sector has been playing its
role in poverty alleviation or not by utilizing the responses collected through questionnaires. It is
found through hypothesis testing that microfinance sector in Karachi has been showing its
dominant role in poverty alleviation.
Practical implications: The sole aim of this study not only to increase the size of literature but
to provide practical implications. This study has been covered from the basics of microfinance
sector to make it a useful tool not only to understand this sector, its history, its key principles but
also current players, foreign investments in this sector and outcomes of this sector within this
society. In addition, this study has been used to highlight barriers to the growth of this sector and
policy measure to resolve them
