Increased commercialisation, microfinance institutions in pakistan tend to confined to a few parts of the country, mostly urban in particular microfinance tends not to reach rural areas where poverty is more widespread. First microfinance bank-pakistan (fmfb-p) was established in 2002 as a nationwide microfinance bank, licensed by the state bank of pakistan fmfb-p was created through a structured transformation of the credit and savings section of the aga khan rural support programme 's (akrsp), an integrated development programme to pioneer the. Microfinance emerged at various times in modern history, however, graeme bank, is commonly considered to be the first modern microcredit institution which was founded in 1983the supreme objective of microfinance initiatives is to reduce the poverty of. In pakistan, microfinance is gaining importance as an effective tool of social mobilization and poverty alleviation currently in pakistan, a variety of institutions ranging from ngos to private and government sponsored rural support programs are delivering microfinance services to the poor.
Highlighting the importance of informal finance markets for the microfinance sector ifms have a long history, pre-dating formal markets, and a strong presence in most of rural and urban pakistan ifms include borrowing and lending among close relations, rotating savings and credit associations, money lending, suppliers ' credit, etc. Microfinance initiatives introduced around 1995, are now considered an integral part of a country's financial system but as these initiatives have gained popularity, the question regarding their sustainability and outreach has also become a thought provoking question. The reasons of the unexplored features of microfinance especially in pakistan is the limited number of academic studies, lack of comprehensive datasets and governess techniques (hartarska, 2005) to explore this field we must investigate this field with maximum data more variables and several governess aspects and characteristics.
The akhuwat foundation is interest free microfinance institution, has 153 branches throughout pakistan but the focus of present study encompasses four branches situated in lahore, namely township, shah jamal, mian meer and green town. Keeping in view the slow industrial activities and rising unemployment among youth, there is a need to highlight the importance of the micro-finance banking in the countrythe micro-finance banks. In pakistan as well as at international level, the importance of microfinance as a tool to eliminate poverty is well putative the basic idea of micro-finance services is to provide the financial assistance to the poor at the time he or she needs it at the doorstep and at a very expedient condition. Pakistan 145 million people of microfinance in pakistan the same percent less than $ 2 per day history's traditional way of life to follow 60s in the focus was on agricultural loans, mostly for information, and felt that poor access to basic needs that subsidized loans. Gilgit: finca microfinance bank opens its latest branch in the scenic city of gilgit, reinforcing its pledge to remain one of the fastest growing microfinance bank in the country with this addition, finca pakistan has broadened its outreach to 108 pakistani cities through 120 branches.
The progress and penetration of islamic microfinance is even more insignificant in relation to the enormous underdevelopment challenges faced by pakistan in this paper, we document the progress of islamic microfinance in pakistan and build the case for its importance for pakistan and for the islamic finance industry. Recommendations for the microfinance institutions through which the microfinance sector of pakistan can reach its potential targets and contribute in the economic development of the country keywords: microfinance, poverty, educational women empowerment and development. Microfinance can and often does play an important role in reducing vulnerability and lessening the impact of economic shocks at microfinance opportunities this is a theme we have been exploring using financial diaries, a methodology that enables us to understand how households manage money, in both good and bad times.
(a) using the 8 questions in page 75 of your text book but start reading from page 71 under the heading of - determining what to research, and stop at the 8 questions , propose a research topic and justify it choice proposed research topic: the role and impact of microfinance institutions on ghana. Highlighting the importance of the sector and its role in pakistan's economy, governor, state bank, yaseen anwar, on this occasion, stated that the bureau would help microfinance banks and. Microfinance is the provision of financial services to low-income people it refers to a movement that envisions a world where low-income households have permanent access to high-quality and affordable financial services to finance income-producing activities, build assets, stabilize consumption, and protect against risks.
The importance of microfinance as a tool to eliminate poverty is well accepted but with this extra ordinary scope this sector is facing some serious challenges as well. After hearing success stories in microfinance across the developing countries, particularly bangladesh, third world nations started to give more importance to mfs since, banks have failed to. According to the author, the beginnings of the microfinance sector in pakistan has its roots in the rural development projects that were funded by donors like the aga khan rural support programs the gop and various rural support programs feel that microfinance can be used as an important tool for women empowerment.