Impact of ‏‏Microfinance on Poverty Alleviation in Rural Areas of Pakistan: A Case of District Zhob

Abstract

In this study the role of microfinance toward poverty all eviation is examined undertaking the variables like children education, household expenditure and household assets. Undertaking the population consisting of the borrower of Balochistan Rural Support Program (BRSP) by using the Krejcie and Morgan table and a sample of 169 is selected for the data collection. A questionnaire from is floated to the borrower of BRSP and is analyzed with Statistical Package for Social Sciences (SPSS).Correlation and regression model are used to find the relationship among microfinance and poverty alleviation undertaking the variables children education household expenditure and household assets. The finding of this study shows that microfinance effects the children education, household expenditure and household assets significantly the objective of this study are accepted as there is positive effect presents between microfinance and poverty alleviation.As the result of this study revealed that there is a positive and significant relationship between household expenditure and household assets that mean the loans provided by the BRSP are in line with poverty alleviation but on the side the negative effect between children education and microfinance means that the BRSP need to educate their borrower to spend also on their children education.