Abstract
This article is about the performance of Microfinance Institutions – MFIs of
Pakistan. In this article the types of MFIs operating is Pakistan is discussed
with their details i.e. Microfinance Banks, Rural Support Programs and
NGOs. Some other organizations are also involved in micro financing but
their percentage is very low. It is found that Rural Support Programs RSPs are
not totally involved in microfinance but have a large chunk of funds for
microfinance. Micro loans are given for various purposes including starting a
new business. The real theme of microcredit is to give money to a poor person
to start a small or micro business and increase his family income but micro
loans are often used for many other purposes such as paying another
expensive loan, paying for medical expenses of bread earner of the family,
marriages, construction etc. In this research work the researcher has tried to
analyze the performance of MFIs of Pakistan and to find out those factors
which contribute in their effectiveness. Two approaches of microfinance i.e.
Institutionists Approach and Welfarists Approach are discussed. To analyze
the performance of MFIs both approaches are considered i.e. Institutionists
and Welfarists. Seventeen parameters are selected, many of these are financial
ratios and these are divided into four groups i.e. sustainability, transparency,
outreach and efficiency. Some ratios/figures of each area of these MFIs are
taken in the data and analysis is performed to find out that which ones are
contributing more or less. This research can be helpful for the MFIs which
want to improve their performance and check their areas of significance for
further improvement and development considering their approach of
alleviating poverty from the society.
ATHER AZIM KHAN. (2010) ANALYSIS OF CRITICAL FACTORS OF MICROFINANCE INSTITUTIONS OF PAKISTAN, Paradigms , Vol 4, Issue 1 .
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