ISLAMABAD:
The existing studies on the impact of microfinance in Pakistan have looked at the impact of microcredit on clients and have not studied the broader range of services, such as savings and insurance.
This was observed in a brainstorming session jointly organised by Pakistan Microfinance Network (PMN) and Citi Foundation here on Friday to discuss the proposed methodology of the first ever comprehensive impact assessment study of the microfinance sector in Pakistan.
It was also observed that the gap in this existing literature was that it was based on quantitative non-experimental methods or quasi-experiments, which have a problem of sample selection bias.
The impact assessment study initiative is based on a $60,000 grant by the Citi Foundation to PMN, which will be conducted to assess the various ways in which the microfinance sector has had an impact on different communities across the country at a social level, generate best practices and share lessons learnt.
The proposed impact evaluation study by PMN will seek to overcome the limitations of the existing body of knowledge on the impact of microfinance and deliver more sound and robust estimates of benefits accruing to the microfinance clients, in terms of higher income and lower poverty levels, improved education and health outcomes and greater empowerment of women, etcetera.
In terms of the scope and design of the proposed study, three options were explored, i.e. sector level study of impact of microfinance using quasi-experimental methodology, sector level study of impact of microfinance using randomised control trials methodology and national level study on the contribution of microfinance to the overall level of poverty reduction and improvement in social outcomes in Pakistan.
Published in The Express Tribune, October 8th, 2011.
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