Abstract:
More than subsidies poor need access to credit. Absence of formal employment make them non `bankable'. This forces them to borrow from local moneylenders at exorbitant interest rates. The successful implementation of the Microfinancing (Grameen Banking Model) has enabled nations around the worlds to believe that the poorest of the poor can and do stand on their own two feet and become a productive unit of the country if proper financial services are provided to them. In Pakistan, majority of the population is living below the poverty line. In order to purse the objective of becoming a developed country it is mandatory to raise the status of these people. To do this, the Pakistani government and the social sector of Pakistan is actively engaged in the proliferation of microfinance to the lowest level possible.
The thesis deals with the study of the microfinance sector in Pakistan, explaining the various facets and characteristics of this phenomenon that is currently quiet popular in the country. The study also sheds lights on the various challenges and problems faced by the participants in the microfinance sector. A comprehensive effort has been made to explain the rules and regulations pertaining to this sector. Quantitative data has been provided wherever possible to give a complete and clear picture of the current scenario of the sector. Recommendations have been provided for the purpose of increasing the outreach and effectiveness of the Microfinance Institutes currently active in the market. The entire purpose of this study is to provide a clear picture of the Microfinance Sector in Pakistan, its effectiveness, its problems and the future outlook of this important phenomenon that would enable the country to break the shackles of poverty and make its view into the realm of development and prosperity.
