Sustainability of Micro Credit System in Pakistan and its Impact on Poverty Alleviation

Latif, Abdul; Nazar, Muhammad Suhail; Mehmood, Tariq; Shaikh, Faiz Muhammad; Shah, Asad Hussain

doi:10.5539/jsd.v4n4p160

Cited by 6 publications

(4 citation statements)

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“…In terms of financing to smallholder farmers, Gupta & Aubuchon (2008) claimed that microfinance proved to improve the lives of the poor farmers. In line with Gupta & Aubuchon (2008), Latief et al (2011) stated that microcredit in Pakistan had positive impact in alleviating poverty in which farmers were able to borrow money at lower bank rates and start a small business. In contrast, Adams & Bartholomew (2010) stated that in Ghana, the impact of microfinance for farmers were socially and financially marginal.…”

Section: Research Frameworkmentioning

confidence: 82%

The Role of Sukuk Financing for Sustainable Development of Smallholder Farmers

Soeleman¹,

Lestari²

2015

AABFJ

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The greatest advance made by mankind was probably the agricultural revolution that has been developed into agricultural development along with population growth in the forms of agricultural expansion and agricultural intensification. The global land grab driven by the acquisition of land has caused radical changes in the use and ownership of land and has important implications for equitable and sustainable development in which local people have been moved to marginal locations. To ensure that the agricultural activities are sustained, a balance of three concepts of people, planet, and profit (3P) are critical to achieve long term social, environmental, and economic issues. One of recently popular instruments to fairly treat the people is an equity based Sukuk in which profit will be shared based on pre-agreed ratio between the investors and the people involved. In term of conservation of planet, strategy in selecting the agricultural commodities and the timing of harvesting are critical. An investment decision-making process by using agricultural appraisal process is established to ensure that the agricultural activities are financially profitable. Abstract:The greatest advance made by mankind was probably the agricultural revolution that has been developed into agricultural development along with population growth in the forms of agricultural expansion and agricultural intensification. The global land grab driven by the acquisition of land has caused radical changes in the use and ownership of land and has important implications for equitable and sustainable development in which local people have been moved to marginal locations. To ensure that the agricultural activities are sustained, a balance of three concepts of people, planet, and profit (3P) are critical to achieve long term social, environmental, and economic issues. One of recently popular instruments to fairly treat the people is an equity based Sukuk in which profit will be shared based on pre-agreed ratio between the investors and the people involved. In term of conservation of planet, strategy in selecting the agricultural commodities and the timing of harvesting are critical. An investment decision-making process by using agricultural appraisal process is established to ensure that the agricultural activities are financially profitable.

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Section: Research Frameworkmentioning

confidence: 82%

The Role of Sukuk Financing for Sustainable Development of Smallholder Farmers

Soeleman¹,

Lestari²

2015

AABFJ

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“…Majority of poor are excluded from financial services and suffers from higher incidence of poverty, unemployment and inequality in income distribution which can be reduced through financial inclusion, microfinance and micro-credit plus services of microfinance (Barik, 2009;Rautela et al, 2010;Goel et al, 2011). Latif et al (2011) and Lal (2018) identified micro-credit results in increasing productivity by creating employment, improving the access to credit for consumption and productive purpose, increase in household's expenditure, increasing income, assets and developing human capital which in turn lead to poverty reduction. Rautela et al (2010) and Arputhamani and Prasannakumari (2011) identified financial inclusion through microfinance is a powerful tool for poverty alleviation and rural development.…”

Section: Review Of Literaturementioning

confidence: 99%

Impact of financial inclusion on economic development of marginalized communities through the mediation of social and economic empowerment

Lal

2021

IJSE

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PurposeThe purpose of this paper is to check the impact of financial inclusion on economic development of marginalized communities through the mediation of socio-economic empowerment.Design/methodology/approachIn order to fulfil the objectives of the study, primary data were collected from 382 bank customers belonging to marginalized communities breathing in Jammu district of J and K by using purposive sampling technique. The data were collected during the month of April–August 2020. Multivariate statistical techniques such as EFA, CFA and SEM were used for data analysis and scale purification.FindingsThe study’s results reveal that financial inclusion has a direct and significant impact on economic development of marginalized communities through the mediation of social and economic empowerment. The study highlights that despite various initiatives taken by the government towards financial inclusion, there is a denial from the financial institutions to extend the credit to the marginalized communities due to lack of education, illiteracy, lack of awareness, attitude of bankers and policy directions to the banking sector, which confine these communities to feel proud, dignified, confident and self-reliant to face any financial crisis.Research limitations/implicationsFirst the in-depth analysis of the study is restricted to Jammu district only that restricts the generalization of the results to the whole population of J and K. Second, the data were collected from respondents belonging to marginalized communities only. Third, comparative study of marginalized households who are covered under the financial inclusion drive and those who are still financially excluded has not been done yet. Fourth, the questionnaire approach was the only way to gather primary data and thus, the results might have a common-method bias.Originality/valueThe study makes contribution in the direction of financial inclusion narrative relating to socio-economic empowerment and economic development of marginalized communities. It looks into how for the socio-economic aspects of marginalized communities influence their exclusion from the financial system of the country. The study also provides valuable insights for the policymakers, researchers and academicians both at the countrywide and intercontinental level to devise and put into practice programmes that will widen right to use financial products and services leading to cutback of poverty incidence, income parity, social and economic empowerment, economic development and reduction in caste and gender based discrimination.

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“…However, it was appreciated by the community fishers, as it was easy to access without collateral. A study in Pakistan showed that although microcredit was small, it had a positive effect on poverty reduction [35]. This community savings fund could help relieve the stress of paying off other debts.…”

Section: Savings Groups and Loansmentioning

confidence: 99%

Savings-Group Improvements Contribute to Sustainable Community-Fisheries Management: A Case Study in Cambodia

et al. 2018

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Small-scale community fishers dominate fisheries in Cambodia. In the central floodplain of Cambodia, 35% of rural dwellers are part-time fishers and 15% full-time fishers. By 2012, the Cambodian government had abolished all commercial fishing lots and put these resources under the management of community fisheries. One challenge in the implementation of community-fisheries management is budget shortages and resultant livelihood stress. To address this problem, savings groups were established. The Sustainable Communities International program provided establishment and facilitation support for savings groups in 10 community fisheries in the Kampong Chhnang Province. The savings groups were recognized as useful support facilities, meeting the needs of community fishers and sustainable community fisheries operations. However, there were concerns about the sustainability of the savings groups and the fisheries. To date, there are no documented case studies of savings groups for community fisheries. This study was conducted in two community fisheries in the Kampong Chhnang Province. We found that the internal rules of the savings group must reflect the opinions and perceptions of the members to ensure sustainable operation. Education and integrated livelihood activities were important considerations in encouraging participation. These insights are also useful for community fisheries elsewhere.

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Sustainability of Micro Credit System in Pakistan and its Impact on Poverty Alleviation

Cited by 6 publications

References 0 publications

The Role of Sukuk Financing for Sustainable Development of Smallholder Farmers

The Role of Sukuk Financing for Sustainable Development of Smallholder Farmers

Impact of financial inclusion on economic development of marginalized communities through the mediation of social and economic empowerment

Savings-Group Improvements Contribute to Sustainable Community-Fisheries Management: A Case Study in Cambodia

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