Poverty In Pakistan

TPakistan is one of the most populated countries of the world with 164.8 million inhabitants with population growth rate 1.8 percent. Two third of the population is living in rural areas. According to SBP (SBP, 2007), working age population (15-59 years) is increasing which was 51% in 1998 and in 2006 it is 57%. In 2006, about 23.94% population is living under the line of poverty which was 34.46% in 2002. According Global Monitoring Report 2006, there is significant increase in economic growth. There is improvement in Social Sector Development and now Pakistan has shifted from Low Human Development group to the category of Medium Human Development. Despite all these improvements, poverty is a major issue which every government is combating

According to Economic Survey 2006-07, Pakistan has 50.5 million active labor forces while 3.1 million out of this is unemployed. If we look unemployment gender wise, despite of women ratio of population which is 49.6%, ratio in labor force is only 25 percent (10.08 million out 50 million) of total labor force. Government has taken many steps to increase women participation in labor force, still women ratio is very less to over all labor force and it is not matching to world standards and trends about women participation in business and job opportunities. (SBP, 2007) All facts show potential to work in microfinance to encourage people and specially women to develop their own entrepreneur so that men in general and women specially can contribute a productive part of society to make it a sustainable. To combat unemployment, only big companies or public sector are not enough for job creation but it would be better if people start their own business for making society productive. Microfinance is not a new idea; it has been successfully implemented by Grameen bank. Back to 1976, Muhammad Yunus took initiative of lending loans by developing solidarity group of women in Jobra

In our country there is great potential of micro credit banks and markets where thirteen million adults can avail this facility. This number is likely to enhance with growing population. Khushhali bank Limited was Initialized in 2000 as a part of the Government of Islamic Republic of Pakistan’s poverty Reduction strategy and its Microfinance Sector Development Programs. MSDP was developed with the assistance of Asian Development Bank. With its headquarters in Islamabad Khushhali Bank Limited operated under the supervision of the State Bank of Pakistan and various central (Commercial) banks are its shareholders. Its mandate is to retail Microfinance services and to act as a catalyst in stabilizing the country’s newly formed microfinance sector. Year after year, Khushhali bank has endeavored to provide financial services to micro enterprises and low-income households across Pakistan. Its mission is to continue the tradition pursuing new avenues of business and explore more opportunities each year, surpassing our own expectations in the zeal to keep pumping the entrepreneurial life blood into the Pakistani economy. Ever since it’s inception, Khushhali bank has sustained its market leadership position within the Microfinance sector in Pakistan. A decade of success has given this institution strength, confidence and ability to explore new