Role of Islamic Microfinance in Poverty Alleviation in Pakistan: An Empirical Approach

International Journal of Academic Research in Accounting, Finance and Management Sciences Vol. 4, No.4, October 2014

11 Pages Posted: 15 Jan 2019

See all articles by Muhammad Naveed Aslam

Muhammad Naveed Aslam

University of Lahore (UOL) - Department of Accounting & Finance; International Islamic University, Islamabad, Pakistan

Date Written: October 12, 2014

Abstract

After 2008 world economic crises, banks and other financial institutes move towards Islamic financing not only in Muslims countries but also in non-Muslim countries of the world. In view of this, some micro financial institutions also introduce Islamic micro financing products in Pakistan. The present study was conducted to analyze the role of Islamic microfinance to alleviate poverty in Pakistan its impacts, people satisfaction level and assess the future of it in Pakistan. An Empirical approach has been adopted due to lack of knowledge to clients about products, technical terms, lack of time, and we come to know the changing improvement in the eyes of those people who directly involve in this system. Questionnaire was used as a tool for data collection. The qualitative data was quantified and chi-square test was applied to test the association of attributes by 5% level of significance. Our analysis concluded that Islamic microfinance playing an important role to improve the living standard, per capita income, awareness level (Educational level), ethical values, profitability, sustainability, infrastructure position, employment level in the society, helpful to control the inflation and unequal distribution of wealth. People are more interested due to religious prospective and prohibition of riba in Islam as well as in Christianity but there should be proper regularity authority to control over it in order to get fruitful results through an implementable model.

Suggested Citation

Naveed Aslam, Muhammad, Role of Islamic Microfinance in Poverty Alleviation in Pakistan: An Empirical Approach (October 12, 2014). International Journal of Academic Research in Accounting, Finance and Management Sciences Vol. 4, No.4, October 2014, Available at SSRN: https://ssrn.com/abstract=3314558

Muhammad Naveed Aslam (Contact Author)

University of Lahore (UOL) - Department of Accounting & Finance ( email )

10-Km Raiwind Road, near Chowk,, Ali Akbar Rd
Lahore
Pakistan

International Islamic University, Islamabad, Pakistan ( email )

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