Understanding The Perception And Reality

Overview

The concept of microfinance started way back in Pakistan to alleviate poverty. Initially, two projects, namely the Orangi Pilot Project (OPP) and the Aga Khan Rural Support Program (AKRSP) were introduced to lending to poor people. In the views of academics, microfinance can be defined as a paradigm shift and ray of hope for the poor. The general perception of people regarding microfinance is that it is a tool or ideal solution for the developing countries to overcome their economic problems. However, a study by Nyassi (2009) and Long (2009) reveals that microfinance has failed to achieve its purpose. The common perception of individuals is that microfinance necessarily chooses profit making rather than poverty alleviation. Thus, this study is an attempt to ascertain the perception and realities of Microfinance in Pakistan, offering insights that can potentially inform strategies for economics dissertation help in addressing all the challenges related to poverty.

Aim of study

The aim of the proposed study is to understand the perception and reality of Microfinance in Pakistan.

Objectives

• To understand the concept of microfinance
• To review the current situation of the microfinance sector in Pakistan
• To recommend ways through which microfinance sector can attain its objectives

Research Questions

• Has the microfinance sector been able to attain its objectives in Pakistan?
• Why Microfinance failed in alleviating poverty in Pakistan?
• What measures should be implemented in Pakistani microfinance sector to make it

Methodology

The proposed study will be a mixed research type in nature as it will contain both qualitative and quantitative data. The data for the proposed research shall be collected through both primary and secondary sources. Under secondary sources, books, journals, online articles, newspapers, etc. will be referred. On the other hand, under primary sources, data for the research will collect through a survey of existing and potential customers of microfinance in Pakistan. The collected data will be analysed through both qualitative and quantitative data analysis technique. Under the qualitative analysis, the thematic analysis will be performed and under the quantitative analysis statistical analysis will be applied through SPSS software.

Summary

Previous research shows that microfinance started way back in Pakistan to alleviate poverty. However, it has been found that microfinance has failed to achieve its purpose in Pakistan. So this research will be an attempt to compare and contrast the perception and reality of Microfinance in Pakistan.

References

• Gilal R. G. Jatoi, M. M. Soomro. R. B. (2011). Microfinance Industry in Pakistan-Challenges and Opportunities. Interdisciplinary Journal of Contemporary Research in Business. 3(1).
• Littlefield. E, Murdoch, J. and Hashemi, S. (2003). Is Microfinance an Effective Strategy to Reach the Millennium Development Goals?
• Long, I. (2009). Perception of Microfinance in Cameroon: A case Study of UNICS. Zeller, M. Lapenu, C. and Greeley, M. (2003). Measuring Social Performance of Microfinance Institutions.

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