The Poverty Rate in Pakistan and the Current Role of Microfinance

Abstract

This article discusses the multifaceted issue of poverty in Pakistan, examining regional variations and the current role of microfinance in addressing this socio-economic challenge. The poverty ratio in Pakistan is explored, with a specific focus on the situations in the Federally Administered Tribal Areas (FATA) and Baluchistan, Khyber Pakhtunkhwa (KPK), Gilgit-Baltistan (GB), Sindh, Punjab, and Azad Jammu and Kashmir (AJK). The major issues and reasons behind unemployment in Pakistan are outlined to provide context for the poverty scenario. The abstract delves into the crucial role played by microfinance companies and banks in the country's efforts toward poverty alleviation. It distinguishes between conventional microfinance and interest-free microfinance, emphasizing the unique approach of Akhuwat Microfinance. The discussion further outlines Akhuwat's loan products and their impact on empowering individuals and communities, shedding light on the potential of microfinance as a tool for fostering economic resilience and reducing poverty in Pakistan.

Keywords- Poverty rate, Microfinance