Performance of Microfinance Providers in Sindh, Pakistan: A Study of Formal and Informal Microfinance Institutes


Volume 16 Issue 1 2020


Ghazala Tunio
University of Sindh.

Ahmed Shafique Joyo
Shaheed Benazir Bhutto University.

Zhang Lei
University of Finance and Economics Nanjing.

Nizamuddin Channa
University of Sindh.

Noor Ahmed
University of Sindh.

Abstract This research aims to analyze the performance of microfinance providers of the Sindh province of Pakistan. For this purpose, the formal and informal microfinance institutes were selected. Data was gathered from a sample of 150 managers of microfinance banks and institutions. In this research, the random sampling technique is used to collect the data through questionnaires. The OLS regression model is employed to analyze the data. The results of this study show that the number of branches and fewer defaulters significantly affect the performance of microfinance institutes in Sindh, Pakistan. Moreover, the total cost also has an important relationship with the performance of microfinance organizations in Sindh. However, the study finds the interest rate, and more diversified financial services to have no significant impact on the performance of microfinance organizations. Due to the lack of financial information of the microfinance institutions in Sindh, there is a dearth of research on the performance of microfinance institutions. Rather than using only the published financial information, this study relies on the information provided by the managers of the microfinance providers for the analysis. The results of this study have implications for the well-functioning of microfinance institutes, and for the government to achieve the poverty alleviation objectives in Pakistan.
Keywords Microfinance institutes, Firm’s Performance, Sindh, Pakistan, Poverty
Year 2020
Volume 16
Issue 1
Type Research paper, manuscript, article
Recognized by Higher Education Commission of Pakistan, HEC
Category "Y"
Journal Name IBT Journal of Business Studies
Publisher Name ILMA University
Jel Classification H11, E42, G18, G28, G38
ISSN no (E, Electronic) 2409-6520
ISSN no (P, Print) 2416-8393
Country Pakistan
City Karachi
Institution Type University
Journal Type Open Access
Type of Review Double Blind Peer Reviewed
Format PDF
Paper Link
Page 151-170
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