Are microfinance loans productive as per MDG’s in Pakistan?
To encounter the prime aim of MDG’s (Poverty Eradication) by 2015, World summit evaluates
progress in 2005. This meeting held in New York, USA where head of 151 nations get
together under the ridge of United Nation General Assembly. Microfinance was top of the
agenda in this momentous summit. The importance of the microfinance shows very well as
per outcome statement of this world summit;
“We recognize the need for access to financial services, in particular for the poor, including
through microfinance and microcredit”.
These aims are applied by the internationally for reducing the poverty by 2015. These MDG’s
address to;
Income poverty
Hunger
Disease
Lack of education
Infrastructure & shelter
Gender exclusion
Environmental degradation
With the access of capital, a good financial sector accomplishes the assets. But low income
people need access of financial assistance to manage their assets and economy.
Microfinance only deals in ‘micro’ not in ‘macro’. But the impact of ‘micro’ can be ‘macro’, if
the utilizations of these financial services in the appropriate business extension and
evolution.
In this current world, no one can beat this poverty issue without aid of others. Now it’s
compulsion of time to fight collectively against poverty not partially. The poor needs access
of financial for meeting their daily needs also. They need employment, schooling, health etc.
most of time they need instant money for their provisions of life. No doubt, thes e financial
services help to reduce the poverty but the attractiveness of MFI’s is to attain and sustain
for poverty alleviation.
If we investigate the MDG’s with esteems of microfinance financial services contributing in
Pakistan particularly in conventional MFI’s point of view, the outcomes that are originate by
me throughout the grass root survey in Kasur & Lahore zones, no MFI which are providing
any additional communal...