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Socio-Economic Impact of the Interest-Free Community Investment Fund: A Case Study of Rural Sindh, Pakistan

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  • Pervaiz Ahmed Memon

    (Department of Business Administration, Sukkur IBA University, Sukkur 65200, Pakistan)

  • Muhammad Ramzan Kalhoro

    (NTNU Business School, Norwegian University of Science and Technology, Klaebuvein 72, 7030 Trondheim, Norway)

  • Kiran Tariq

    (Department of Business Administration, Sukkur IBA University, Sukkur 65200, Pakistan)

  • Paras Sindhu

    (Department of Business Administration, Sukkur IBA University, Sukkur 65200, Pakistan)

  • Suman Shaikh

    (Department of Business Administration, Sukkur IBA University, Sukkur 65200, Pakistan)

Abstract

This study aims to measure the impact of an intervention, the Community Investment Fund (CIF), on the socio-economic life of rural women. CIF is a community-managed fund aimed at improving the living standards of women by empowering them to undertake income-generating projects to become financially more stable and self-governed in the Khairpur, Shikarpur, Kandhkot-Kashmore and Jacobabad districts of Sindh, Pakistan. This study used a quasi-experimental design approach that involved two groups, i.e., the treatment group (beneficiaries) and control group (non-beneficiaries). The sample size of this study was 708 respondents including the treatment and control group. The results of comparison of mean indicate that there is a significant difference between treatment and control group in terms of socio-demographic variables (including monthly income and consumption, saving amount, total asset value, an asset purchased value and household diet) and women empowerment’s indicators, thereby suggesting that CIF has resulted in women empowerment. Concerning the results of the poverty scorecard, the higher graduation of beneficiaries (treatment group) asserts that the intervention of CIF has also a positive impact on targeted beneficiaries. In particular, the findings indicate that 72% of beneficiaries (treatment group) have graduated from one poverty band to another higher band compared to 59.4% of non-beneficiaries (control group) in poverty score. In addition, the findings of the logistic regression analysis confirmed that participation in the CIF program empowers women beneficiaries. This study will support policymakers to further improve CIF so that it can become more effective and sustainable.

Suggested Citation

  • Pervaiz Ahmed Memon & Muhammad Ramzan Kalhoro & Kiran Tariq & Paras Sindhu & Suman Shaikh, 2022. "Socio-Economic Impact of the Interest-Free Community Investment Fund: A Case Study of Rural Sindh, Pakistan," Economies, MDPI, vol. 10(1), pages 1-19, January.
    • Handle: RePEc:gam:jecomi:v:10:y:2022:i:1:p:18-:d:719628
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    References listed on IDEAS

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    1. Shirazi, Nasim Shah, 2012. "Targeting and Socio-Economic Impact of Microfinance: A Case Study of Pakistan," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 20, pages 1-28.
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