THE IMPACT OF MICROCREDIT FINANCING ON POVERTY ALLEVIATION AND WOMEN EMPOWERMENT: AN EMPIRICAL STUDY ON AKHUWAT ISLAMIC MICROFINANCE

Abstract

Microfinance credit has become significant in contemporary society in terms of letting people start their own business and create their reliable source of income, and engage women in various earning opportunities through providing them microfinance credits that could lead them towards becoming financially independent in Pakistan. Credit of micro finance plays a vital role in the alleviating poverty by providing credit to small business owners to build their businesses, earn their livelihood, improve their living standard and climb out of poverty. Akhuwat Islamic Microfinance is an organisation operating under the companies ordinance 1984 and section 42 that primarily aims to reduce poverty and promote women empowerment by offering interest-free microfinance credits to the poor. In order to get the effectiveness of Microcredit finance on alleviation of poverty and empowerment of women in the rural areas of Pakistan, quantitative research design has been employed. The sample size of this study has been based on 290 respondents living in the rural areas of Pakistan specifically women. The collected data from the surveys have been analysed using the technique of linear regression analysis. There is a significant impact of micro-credit financing on poverty alleviation and women empowerment. It has been discovered in the findings of the study that microfinance plays a crucial role in eradicating poverty and empowers women.