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Impact of Microfinance on Poverty Alleviation. A Case Study of NRSP in Bahawalpur of Pakistan

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  • Sunia Ayuub

    (The Islamia University Bahawalpur)

Abstract

The purpose of the research paper is to measure the impact of Microfinance on Bahawalpur District. Main Microfinance Institutes in Bahawalpur are National Rural Support Program (NRSP) Microfinance Bank (MFB), Tameer Microfinance Bank, Khushhali Bank, First Microfinance Bank and Kashf Foundation. For this report data has been collected through questionnaire, descriptive research and interviews from Microfinance Banks and some of their clients. Mostly in our rural areas credit is not available to the farmer on time or they can get it only on very high interest rate. So there is great potential of Micro Financing in Bahawalpur region. Many developing countries like Bangladesh, India, Sri Lanka and Pakistan are using microfinance to increase the living standard of their people. But in Pakistan main focus of Microfinance Institutes (MFIs) was only to give credit. This paper mainly focuses on the impact of NRSP on this area, so borrowers have been taken as sample from NRSP and customers are selected randomly. Increase in income level and customer satisfaction level was observed in this report but this increase is not so significant. There are still high potential markets that need micro finance. Rate of interest charged by these MFIs are very high and their main focus is on Agriculture sector only. There is a strong relationship between microfinance and poverty alleviation. The results also showed that Microfinance Scheme help people to improve their living standard and provide them financial opportunity to expand their business. Microfinance is the key strategy that leads to quick revival of economy, increase in living standards and empowerment.

Suggested Citation

  • Sunia Ayuub, 2013. "Impact of Microfinance on Poverty Alleviation. A Case Study of NRSP in Bahawalpur of Pakistan," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 3(1), pages 119-135, January.
    • Handle: RePEc:hur:ijaraf:v:3:y:2013:i:1:p:119-135
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    References listed on IDEAS

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    1. Tomola M. Obamuyi, 2009. "Credit delivery and sustainability of micro‐credit schemes in Nigeria," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing Limited, vol. 3(1), pages 71-83, March.
    2. Awojobi, Omotola & Bein, Murad, 2010. "Microfinancing for Poverty Reduction and Economic Development; a Case for Nigeria," MPRA Paper 33530, University Library of Munich, Germany, revised 11 Apr 2011.
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    Cited by:

    1. Nain Tara & Noman Arshed & Osama Aziz & Mahwish Yamin, 2020. "Can Financial Assistance Mediate the Training and Human Capital Relationship for Pakistani Women Micro Entrepreneurs?," International Journal of Economics and Financial Issues, Econjournals, vol. 10(4), pages 80-87.
    2. Stylianou Tasos & Muhammad Ijaz Amjad & Masood Sarwar Awan & Muhammad Waqas, 2020. "Poverty Alleviation and Microfinance for the Economy of Pakistan: A Case Study of Khushhali Bank in Sargodha," Economies, MDPI, vol. 8(3), pages 1-18, August.
    3. Hafiz Saqib Mehmood Najmi & Farrukh Bashir & Muhammad Zubair Zia, 2015. "Socioeconomic Impact of Microfinance on Borrowers: A Case Study of NRSP Bank Minchanabad," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 3(1), pages 41-61, June.
    4. Jie Yu & Xiao Han & Baozhen Chen & Jinzheng Ren, 2020. "Estimating the Impact of Poverty Alleviation Microcredit on the Income of Poor Households Using the Propensity Score Matching Method: Evidence from China," Agriculture, MDPI, vol. 10(7), pages 1-19, July.
    5. Rana M. Naeem Khan & Owais Shafique & Nadeem Siddique & Razia Razzaq & Rana M. Zahid Hafeez, 2021. "A Qualitative Study On The Socio-Economic Impact Of Participation In Akhuwat Islamic Microfinance On Poverty Eradication And Women Empowerment," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(4), pages 176-185, December.
    6. Aroosa Khan & Muhammad Shaukat Malik, 2020. "Micro-Financing: A Comparative Study of Bangladesh & Pakistan," Business and Economic Research, Macrothink Institute, vol. 10(3), pages 181-202, September.
    7. Sikander Hussain Soomro & Parveen Shah & Muhammad Saleem Rahpoto, 2020. "A Quantitative Analysis of Microfinance to Eradicate Poverty," Global Economics Review, Humanity Only, vol. 5(1), pages 117-130, March.

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    Keywords

    Microfinance; interest;

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