Is the Micro Finance Program Panacea for Household Welfare? An Empirical Analysis from Pakistan

Muhammad Usman

Abstract:

This study evaluated the impact of microfinance programs Benazir Income Support Programme (BISP) and National Rural Support Programme (NRSP) on the welfare of the household. Primary data was collected through a questionnaire from 130 microfinance beneficiaries of BISP and NRSP from Islamabad/Rawalpindi. Purposive Sampling Technique and Bivariate Probit Regression Model were used for empirical results. The results showed that if being a member of the microfinance program, household welfare had improved. Respondents experienced a rise in household income, household savings, enabled to pay medical bills and schooling expenditure, improved household consumption pattern, and after availing the microloan/cash grant. The improvement in welfare indicators depicts progression in the welfare of the beneficiary population that showed a trend of poverty reduction through these microfinance programs.

research from:

• Foundation University - Faculty of Management Sciences

Year:

2021

Type of Publication:

Article

Keywords:

household welfare; family member; microloan

Journal:

International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies

Volume:

12

Number:

3