Determinants of Micro Finance in Pakistan

Abstract

This study delves into the relationship between microfinance institutions and microfinance banks, tracing their historical development and evaluating their impact on reducing unemployment in the economy. The detailed examination of these factors leads to the conclusion that both microfinance institutions and microfinance banks play a crucial role in fostering self-employment across various sectors, transcending sectional divisions within the economy. These entities contribute significantly to creating opportunities for self-employment by providing microfinance loans to both rural and urban populations. The support extended by microfinance institutions and microfinance banks enables individuals to expand their businesses into different sectors of the economy. This expansion, in turn, facilitates the provision of new goods and services, directly benefiting the population and underscoring the instrumental role of microfinance in creating self-employment in Pakistan.