Abstract:
Microfinance sector in Pakistan is increasing rapidly as evident with 29.5% growth observed in
fiscal year 2014/15 compared to last year. Microfinance is an alternative to those who fail to
approach commercial banks due to lack of bank guarantee against loan
poor people of rural areas, especially women. Accordingly,
in fact
. The main beneficiaries
of microfinance programs are
literature advocates that poverty is generally reduced through microfinance activities, but
multidimensional poverty in 2014/15 is 41.5% in rural areas of Sindh which is almost same in
reported by United Nations in 2015 in a report “Multidimensional Poverty in2012/13, as
Pakistan”.
This thesis therefore, aims to investigate the contradiction and evaluate the role of microfinance
practices in poverty alleviation considering the six independent variables i
microfinance loan (AMFL), efficient usage of microfinance loan (EUMFL), establishment and
development of new businesses (EDNB), employment opportunities (EO), lifestyle of
accessibility ofi.e.
microfinance borrowers (LMFB) and asset accumulation (AA).Our research is explanatory in
nature, therefore, we develop research hypothesis against each independent variable before data
randomly selected from the Tharparkarcollection. A sample of 380 micro finance borrowers
district of Sindh to fill out the five (5) point likert scale questionnaire. Primary data gathered
from questionnaire was assessing through a variety of statistical tools like frequencies,
descriptive statistics, correlation and multiple regression analysis.
After overall analysis, we concluded that microfinance activities have a positive and significant
role in poverty alleviation of Tharparkar district but still microfinance activities
not alone in a position to eradicate poverty altogether. To control the multidimensional poverty
in rural areas of Sindh, the government should play its role to provide basic facilities to poor
people including free basic health
access to water, electricity and sanitation.
