Impact of Micro Credit on Poverty Alleviation: A Case Study of District Ghotki, Sindh, Pakistan

Authors

  • Abdul Rauf Jakhro M.Phil Scholar Department of Economics, University of Sindh Jamshoro. Author
  • Dr. Imdad Ali Khowaja Associate Professor, Department of Economics, University of Sindh Jamshoro. Author
  • Tanveer Ahmed Jamali M.Phil Scholar, Department of Economics, University of Sindh, Jamshoro Author

Keywords:

Micro Credit, Poverty, Case Study, District Ghotki, Socioeconomic situation

Abstract

Low-income individuals can improve their socioeconomic situation and raise their income by using microcredit as a financial tool. The main objective of microfinance institutions is to reduce poverty. In order to better understand how microcredit institutions might reduce poverty and improve socioeconomic conditions, this study focused on the Ghotki district in Sindh. 384 active borrowers with credit histories with the microfinance institution were chosen at random using a random sampling technique in order to determine the study question's conclusion. Evaluating the effect of micro lending on the eradication of poverty and improvement in the socioeconomic situation of the borrowers, three different statistical methods were used: the chi-square test, the paired t test, and the independent t test. The p-value for the variable's improvement in standard of living, income, and employment opportunities is predicted to be 0.03 (0.05 level of significance), 0.000 (0.05 level of significance), and 0.000, respectively. The results demonstrate that microcredit improves socioeconomic factors like income, education, health care, consumption, and the growth of jobs, as well as the wellbeing of the borrower. The study recommended that microfinance organizations increase their visibility in rural and semi-urban areas of Sindh. Microfinance organizations ought to create more adaptable financial solutions for the nation's kids and other low-income populations. The MFIs and government organizations should set up training sessions and workshops to help borrowers make good use of their loans. The government should lower lending rates for the poor in order to accomplish social and economic development in the nation, and it should particularly support the household-based industry.

https://doi.org/10.5281/zenodo.10496444

References

Ahmed, I., & Lema, B. (2017). Role of Microfinance in poverty alleviation in Africa- Meta Analysis. International Journal of Research in Social Sciences, 07(08), 68-84.

Al Mamun, C. A., Nazmul Hasan, M., & Rana, A. (2013). Micro-credit and poverty alleviation: The Case of Bangladesh. World Journal of Social Sciences, 03(01), 102 – 108.

Asghar, N., & Chugtai, M. W. (2012). Role of Microcredit for Poverty alleviation in Pakistan: A Case Study of Punjab Rural Support Programme. Research Journal of economic and business studies, 1(6), 1-6.

Cheema, A. R., & Parkash, R. (2018). Role of Micro finanace in poverty alleviation in rural areas of district sarghodha Pakistan. Pakistan Journal of Applied Economics, 111-128.

Chugtai, M. W., Zaheer, M. F., & Taj, s. (2015). Effectiveness Of Micro Financing For Poverty Alleviation: A Case Study Of Tameer Microfinance Bank. Research Journal of Economic and Business studies, 04(05), 91-99.

Hussein, M., & Hussain , S. (2003). The Impact of Micro Finance on Poverty and Gender Equity. Islamabad: pakistan micro finance network

Karim, R., Tania, S., & Farazi, M. R. (2012). Role of Micro-credit in Poverty Alleviation of Rural Poor: Evidence from Laxmipur District of Bangladesh. Journal of Business and Technology (Dhaka), 7(2), 37-56.

Khan, S., Khan, H., Azeem, A., Islam, Z., & Rehman, N. (2017). The Role of Micro credit on Poverty Alleviation. Journal of Poverty, Investment and Development, 35, 49-54.

Parathap, Mahesh, & Karthik. (2018). Impact of Microfinance on Poverty Alleviation. Journal of Management, 05(04), 278-286.

Pomi, S. S. (2019). Impact of Microcredit on Rural Poverty Alleviation in the Context of Bangladesh. International Journal of Economics and Finance, 11(06), 70-82.

Ramath , P., & Preethi . (2014). Micro Finance in India- for Poverty Reduction. International Journal of Research and Development - A Management Review, 05(04), 20-23.

World bank Group. (2019). Poverty and shared Prosperity 2018. Washington: World bank.

Downloads

Published

2023-09-30

How to Cite

Impact of Micro Credit on Poverty Alleviation: A Case Study of District Ghotki, Sindh, Pakistan. (2023). International Research Journal of Management and Social Sciences, 4(3), 151-161. https://irjmss.com/index.php/irjmss/article/view/14

Similar Articles

1-10 of 192

You may also start an advanced similarity search for this article.