IMPACT OF MICRO FINANCE ON WOMEN EMPOWERMENT: A CASE STUDY OF SELECTED DISTRICTS OF KHYBER PAKHTUNKHWA

Abstract

From the time of its birth Pakistan is facing turmoil and deprivation in all aspects of life, keeping it from coming at par with the rest of the world. For over six decades Pakistan has made little progress due to the unfair division of resources and gender discrimination. The burden of this scantiness was put intensely on the women folk. Women play a vital role in domestic functions. Their role should be enhanced by empowering them financially. Microfinance has been found as a main antidote to empower women and eradicate poverty. The focus of the study has been on micro-credit, given to the poor women to help them to initiate business, in order to increase their income which in the long run will empower them. Main objectives of the study were to determine the impact of microfinance on the self confidence and decision making power of women in the study area. For this purpose a sample of 235 women who had taken credit from the two major microfinance institutions National Rural Support Program (NRSP) and Sarhad Rural Support Program (SRSP) were randomly selected from three districts (Peshawar, Mardan, Swabi) of Khyber Pakhtunkhwa province. Information regarding demography and other variables were collected through structured questionnaire. In order to understand the complexity of the phenomenon of women empowerment, a structured interview schedule was also conducted. Different statistical instruments i.e. descriptive analyses, bar charts, bivariate and multivariate analyses were employed to present the information scientifically, and to build up the relationship between the various explanatory variables and dependent variable. The analysis specifies that the response about joining microfinance was very encouraging. Beneficiaries of microfinance felt positive influence of microfinance on their level of self-confidence, family life, husband and wife relations, respect from in-laws, and decrease in household violence. Their decision making ability regarding income and expenditure, children education and health, had also increased. Women’s own perception after joining microfinance was also very positive. The study further concludes that personal and socio-political empowerment of women is greater in district Peshawar, while their economic empowerment is greater in district Swabi. Similarly the decision making ability of women is greater in district Mardan. It is suggested that the process of available credit should be made easier and outreach of micro finance sector should be expanded to other far-flung areas of the country.