IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0280731.html
   My bibliography  Save this article

Financial and social efficiency of microcredit programs of partner organizations of Pakistan Poverty Alleviation Fund

Author

Listed:
  • Zulfiqar Ali
  • Muhammad Asif
  • Naila Nazir
  • Ateeq Ur Rehman Irshad
  • Ikram Ullah
  • Shabir Ahmad

Abstract

This paper examines the financial and social efficiency of the microcredit programs offered by the Pakistan Poverty Alleviation Fund partner organizations. Panel data concerning variables of interest are collected from Pakistan Microfinance Network, covering a minimum of 14 partner organizations (in 2005) to a maximum of 35 partner organizations (in 2014). The data is analyzed using the Data Envelopment Analysis, assuming both constant and variable returns to scale scenarios and the operational scale of the partner organizations. Trends in average efficiency scores have been analyzed to assess the mission drift of the partner organizations. Results reveal that managerial inefficiency is more pronounced than the sub-optimal production scale in all three scenarios under consideration. Moreover, trends in the efficiency scores indicated a slight mission drift of the microfinance providers. About 77.5% of the partner organizations were financially sustainable over the entire study period. The study recommends providing objective-oriented training, workshops, and seminars for managing microfinance providers.

Suggested Citation

  • Zulfiqar Ali & Muhammad Asif & Naila Nazir & Ateeq Ur Rehman Irshad & Ikram Ullah & Shabir Ahmad, 2023. "Financial and social efficiency of microcredit programs of partner organizations of Pakistan Poverty Alleviation Fund," PLOS ONE, Public Library of Science, vol. 18(3), pages 1-17, March.
    • Handle: RePEc:plo:pone00:0280731
    DOI: 10.1371/journal.pone.0280731
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0280731
    Download Restriction: no
    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0280731&type=printable
    Download Restriction: no
    File URL: https://libkey.io/10.1371/journal.pone.0280731?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ikram Ullah & Muhammad Idrees Khawaja & Nasir Iqbal, 2019. "Sustainability, market conditions and outreach: the vicious misconception of the win-win proposition in the microfinance industry," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 32(1), pages 2122-2137, January.
    2. Adam McCarty, 2001. "Microfinance in Vietnam - A Survey of Schemes and Issues," Finance 0110001, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kieran Donaghue, 2004. "Microfinance in the Asia Pacific," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 18(1), pages 41-61, May.
    2. Sougata Ray & Sushanta Mahapatra, 2016. "Penetration of MFIs among Indian states: an understanding through macro variables," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 15(3), pages 294-305, September.
    3. Thi Thu Tra Pham & Robert Lensink, 2008. "Household Borrowing in Vietnam," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 7(3), pages 237-261, December.
    4. Dinh Khoi Phan & Christopher Gan & Gilbert V. Nartea & David A. Cohen, 2014. "The impact of microcredit on rural households in the Mekong River Delta of Vietnam," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 19(4), pages 558-578, October.
    5. Nghiem, Son & Laurenceson, James, 2006. "NGO Microfinance in Vietnam: Stakeholders' Perceptions of Effectiveness," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25594, International Association of Agricultural Economists.
    6. Ta Nhat Linh & Hoang Thanh Long & Le Van Chi & Le Thanh Tam & Philippe Lebailly, 2019. "Access to Rural Credit Markets in Developing Countries, the Case of Vietnam: A Literature Review," Sustainability, MDPI, vol. 11(5), pages 1-18, March.
    7. Thi Kieu Van Tran & Ehsan Elahi & Liqin Zhang & Muhammad Abid & Quang Trung Pham & Thuy Duong Tran, 2018. "Gender differences in formal credit approaches: rural households in Vietnam," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 32(1), pages 131-138, May.
    8. Khac Linh Bui & Thanh Hang Bui, 2022. "Does Rural Credit Mediate Vulnerability Under Idiosyncratic and Covariate Shocks? Empirical Evidence from Vietnam Using a Multilevel Model," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(1), pages 172-224, February.
    9. Nguyen, Cuong & Van den Berg, Marrit, 2008. "The impact of Micro-credit and Informal Credit on Poverty and Inequality in Vietnam," MPRA Paper 107151, University Library of Munich, Germany.
    10. Dufhues, Thomas & Buchenrieder, Gertrud, 2005. "Outreach of credit institutes and households' access constraints to formal credit in Northern Vietnam," Research in Development Economics and Policy (Discussion Paper Series) 8535, Universitaet Hohenheim, Department of Agricultural Economics and Social Sciences in the Tropics and Subtropics.
    11. Cuong Viet Nguyen & Marrit Berg, 2014. "Informal Credit, Usury, or Support? A Case Study for Vietnam," The Developing Economies, Institute of Developing Economies, vol. 52(2), pages 154-178, June.
    12. Thi Thu Tra Pham & Robert Lensink, 2006. "The Determinants of Loan Contracts to Business Firms: Empirical Evidence from a Private Bank in Vietnam," WIDER Working Paper Series RP2006-86, World Institute for Development Economic Research (UNU-WIDER).
    13. Thi Thu Tra Pham & Robert Lensink, 2007. "Lending policies of informal, formal and semiformal lenders," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 15(2), pages 181-209, April.
    14. Thomas Dufhues & Franz Heidhues & Gertrud Buchenrieder, 2004. "Participatory Product Design by Using Conjoint Analysis in the Rural Financial Market of Northern Vietnam," Asian Economic Journal, East Asian Economic Association, vol. 18(1), pages 81-114, March.
    15. Khoi, Phan Dinh & Gan, Christopher & Nartea, Gilbert V. & Cohen, David A., 2013. "Formal and informal rural credit in the Mekong River Delta of Vietnam: Interaction and accessibility," Journal of Asian Economics, Elsevier, vol. 26(C), pages 1-13.
    16. Thi Lan, Le. & Tran, Nhu-An., 2005. "Towards a viable microfinance sector in Viet Nam : issues and challenges," ILO Working Papers 993860003402676, International Labour Organization.
    17. Mikkel Barslund & Finn Tarp, 2006. "Rural Credit in Vietnam," Discussion Papers 06-03, University of Copenhagen. Department of Economics.
    18. Mai, Nhat Chi, 2013. "Essays on Farm Household Decision-Making: Evidence from Vietnam," OSF Preprints 96azx, Center for Open Science.
    19. Uduakobong Inyang, 2022. "Risks to credit access in a developing economy:Focus on household characteristics and the choice of credit in the Niger Delta Region of Nigeria," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(2), pages 228-240, March.
    20. repec:ilo:ilowps:386000 is not listed on IDEAS

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:plo:pone00:0280731. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.