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Meeting the double bottom line: the impact of Khushhali bank's microfinance program in Pakistan

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  • Montgomery, Heather

Abstract

Is it possible for microfinance institutions to simultaneously pursue profits and poverty reduction? This study explores this question by analyzing the impact of Khushhali Bank, the largest retail microfinance bank in Pakistan. Khushhali Bank has shown that it can scale up outreach while remaining focused on the core goals of operational and financial sustainability. Using primary data collected from over 2,000 rural and urban households across Pakistan, the study examines whether the bank also had an impact on economic or social measures of poverty, including empowerment of poor women, or income generating activities run by those households. The poorest of the poor - those subsisting on less than half the official poverty line - are demonstrated to have benefitted the most from the program.

Suggested Citation

  • Montgomery, Heather, 2005. "Meeting the double bottom line: the impact of Khushhali bank's microfinance program in Pakistan," MPRA Paper 32595, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:32595
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Mathilde Maîtrot & Miguel Niño-Zarazúa, 2017. "Poverty and wellbeing impacts of microfinance: What do we know?," WIDER Working Paper Series 190, World Institute for Development Economic Research (UNU-WIDER).
    2. Mazumder, Mohummed Shofi Ullah & Lu, Wencong, 2015. "What Impact Does Microfinance Have on Rural Livelihood? A Comparison of Governmental and Non-Governmental Microfinance Programs in Bangladesh," World Development, Elsevier, vol. 68(C), pages 336-354.
    3. Erhardt, Eva Christine, 2017. "Microfinance beyond self-employment: Evidence for firms in Bulgaria," Labour Economics, Elsevier, vol. 47(C), pages 75-95.
    4. Hisaki KONO & Kazushi TAKAHASHI, 2010. "Microfinance Revolution: Its Effects, Innovations, And Challenges," The Developing Economies, Institute of Developing Economies, vol. 48(1), pages 15-73, March.
    5. Coleman, Brett E., 2006. "Microfinance in Northeast Thailand: Who benefits and how much?," World Development, Elsevier, vol. 34(9), pages 1612-1638, September.
    6. Kurosaki, Takashi & Khan, Hidayat Ullah, 2011. "Vulnerability of Microfinance to Strategic Default and Covariate Shocks:Evidence from Pakistan," PRIMCED Discussion Paper Series 10, Institute of Economic Research, Hitotsubashi University.
    7. Marco Sanfilippo & Bruno Martorano & Chris De Neubourg, 2012. "The Impact of Social Protection on Children: A review of the literature," Papers inwopa666, Innocenti Working Papers.
    8. Erhardt, Eva, 2017. "Microfinance beyond self-employment: Evidence for firms in Bulgaria," MPRA Paper 79294, University Library of Munich, Germany.
    9. Montgomery, Heather & Weiss, John, 2011. "Can Commercially-oriented Microfinance Help Meet the Millennium Development Goals? Evidence from Pakistan," World Development, Elsevier, vol. 39(1), pages 87-109, January.
    10. Shahrukh Rafi Khan & Shaheen Rafi Khan, 2016. "Microcredit in South Asia: Privileging women’s perceptions and voices," Progress in Development Studies, , vol. 16(1), pages 65-80, January.
    11. Waqas Umar Latif & Sana Ullah & Wasim Ahmed & Muhammad Umar Sultan & Rana Muhammad Sohail Jafar & Muhammad Tariq & Wang Linping, 2020. "Microcredit and Economic Welfare: Experience of Poor Rural Households from Pakistan," Journal of International Development, John Wiley & Sons, Ltd., vol. 32(6), pages 976-997, August.
    12. Mathilde Maîtrot & Miguel Niño-Zarazúa, 2017. "Poverty and wellbeing impacts of microfinance: What do we know?," WIDER Working Paper Series wp-2017-190, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    Keywords

    microfinance; poverty; impact; empowerment; financially sustainable; commercial;
    All these keywords.

    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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