1) The document discusses the impact of microfinance on poverty in Pakistan, using Khushhali Bank as a case study. It analyzes data collected from 200 borrowers of Khushhali Bank on variables like income, consumption, access to healthcare, transport, social involvement, and general living conditions before and after taking microloans. 2) The results show statistically significant improvements across all variables after taking microloans, indicating that microfinance has reduced poverty levels and improved standards of living. The conclusion is that microcredit has a positive impact in reducing overall poverty by 3.07% and extreme poverty by 0.63%. 3) The objective of the study was to evaluate Khushhali Bank's

1. INTERNATIONAL FINANCE
MANAGENENT
BY PROF. ADNAN

2. Presented By :
Iqra Rafiq 15
Tayyaba Masood 18
Iqra Jahangir 21
Kiran Rubab 36
Noreen Afzal 46

3. Impact Of Micro
Finance
on poverty
(Case Study of
Khushhali Bank)

4. Poverty
Major Problem
Base Of Terrorism
High Level Poverty Was 40 Percent In 1960’s
Poverty Was Declined From 1970 To 1988
Foreign Remittances, Increased Private
Investment And Good Performance Of
Agricultural Sector

5. Poverty
Poverty Was 32 % To 36 % During
2001/02
Increase Due Structural Changes By Govt

6. Pakistan Poverty Alleviation
Fund
Set Up In 2000 By Govt
Form Of A Private, Non-profit Company
Major Contributor Is World Bank
Aim To Reach The Poor Communities
Through The NGOs & CBOs

7. Literature Review
• Bane gas et al (2002), employing Legit
model, found positive impact on the income
of borrowers. Gallup Pakistan (2005), using
counter factual, combined approach, found
positive impact of PPAF microfinance on the
consumption, income and assets of the
borrowers. However, the study did not
explore the impact of the PPAF microfinance
on poverty. Keeping in view the relevant
literature reviewed in brief above, firstly, it is
observed that empirical findings are mixed
and, secondly, no study has been conducted

8. Objective
Role Of Khushhali Bank to alleviate the poverty
Examine Poverty Alleviation And Its Future
Evaluate Procedures And Policies Of Khushhali
bank

9. Research Question
Is there is any increase in income level,
education and health facilities for family
members, after taking loan and Micro
financing Institutes helping in generating
new employment opportunities?

10. Variables
Dependent variable
 Poverty
Independent variable
 Micro finance

11. Khushhali Microfinance
Bank
Founded In The Year 2000
 Part Of The Government Of Islamic
Republic Of Pakistan's Poverty Reduction
Strategy
And Its Microfinance Sector Development
Program (MSDP )

12. Branches Across Pakistan
Total 144 branches in pakistan
1 Headquater & branch in Islamabad
28 Branches in Sindh
93 Branches in Punjab
15 Branches in Khyber-Pakhtunkhwa
1 Branches in Balochistan
 4 branches in Azad Jammu and Kashmir

13. Clients
 Small Enterprises
 Medium Enterprises
low income households across Pakistan

14. Numbers Of Borrowers
Active borrowers
 545,954
Cumulative loans serviced
 5069732

15. Loan’s Product
Khushhali Qaza
• Age: 20 – 63 Years
• Income: Less Than Or Equal To Rs. 500,000
• Permanent Resident Of The Locality For 2 Year
• 2 Years Experience
 Tenure
3- 12 Months
 Repayment Options
• Monthly installment/ lump sum

16. Khushhali Sarmaya
 Age: 22– 60 Years
 Self-employed Person
 2 Years Experience
 Good Credit History
 Tenure
 3– 36 months
Repayment Options
 Equal Monthly Installments

17. Research Design
Sample
 Size s 200
 Associated with khushali bank
 Both male & female
Procedure

18. Methodology
Before – After’ Approach
 Comparison Of The Change
 In The Poverty Level Of Both Groups
To Check The Impact Of Micro Credit

19. Years Of
Association
Frequency % Valid % cum-%
1 30 15.0 15.0 15.0
2 38 19.0 19.0 34.0
3 42 21.0 21.0 55.0
4 32 16.0 16.0 71.0
5 29 14.5 14.5 85.5
6 29 14.5 14.5 100.0
Total 200 100.0 100.0

20. Marital
Status
Freq. % Valid% cum-%
Married 117 58.5 58.5 58.5
Un Married 83 41.5 41.5 100.0
Total 200 100 100

21. Income Level After
Freq- % Valid % cum-%
2000-80000 11 5.5 5.5 5.5
8001-15000 15 7.5 7.5 13
15001-21000 134 67 67 80
21001-25000 40 20 20 100
Total 200 100 100
Income Level Before
Freq % Valid % cum-%
2000-8000 39 19.5 19.5 19.5
8001-15000 59 29.5 29.5 49.0
15001-21000 65 32.5 32.5 81.5
21001-25000 37 18.5 18.5 100
Total 200 100 100

22. Consumption Before
Freq % Valid %
Cum-%
Never 1 .5 .5 .5
Once a Month 111 55.5 55.5 56.0
Twice a Month 60 30.0 30.0 86.0
Once a Week 25 12.5 12.5 98.5
Twice a Week 3 1.5 1.5 100
Total 200 100 100
Consumption After
Freq % Valid %
cum-%
Never 6 3.0 3.0 3.0
Once a Month 98 49.0 49.0 52.0
Twice a Month 63 31.5 31.5 83.5
Once a Week 29 14.5 14.5 98.0
Twice a Week 4 2.0 2.0 100
Total 200 100.0 100

23. Medical Facility Before
Freq % Valid % Cum-%
Dispensary 142 71 71.0 71.0
Govt Hospital 57 28.5 28.5 99.5
Private Hospital 1 .5 .5 100
Total 200 100
Medical Facility After
Freq % Valid %
cum%
Dispensary 98 49.0 49.0 49.0
Govt Hospital 87 43.5 43.5 92.5
Private Hospital 15 7.5 7.5 100.0
Total 200 100 100

24. Transport issues Before
Freq % Valid % cum-%
Govt 88 44.0 44.0 44.0
Private 59 29.5 29.5 73.5
Own 53 26.5 26.5 100
Total 200 100 100
Transport issues After
Freq % Valid % cum-%
Govt 51 25.5 25.5 25.5
Private 44 22.0 22.0 47.5
Own 97 48.5 48.5 96.0
Nothing 8 4.0 4.0 100.0
Total 200 100 100.0

25. Social issues before
Frequency Percent Valid Percent Cumulative
Some times 58 29.0 29.0 29.0
To Some Extent 102 51.0 51.0 80.0
Total Involment 40 20.0 20.0 100.0
Total 200 100.0 100.0
Social issues after
Frequency % Valid % cum-%
Some times 13 6.5 6.5 6.5
To Some Extent 67 33.5 33.5 40.0
Total Involment 120 60.0 60.0 100.0
Total 200 100 100

26. General Conditions Before
Freq % Valid % cum-%
Nothing 12 6.0 6.0 6.0
Film Annually 32 16.0 16.0 22.0
Film and Park Annually 119 59.5 59.5 81.5
Film and Park Semi-Annually 17 8.5 8.5 90.5
Hoteling, Film and Park Annuall 20 10.0 10.0 100
Total 200 100 100
General Conditions After
Nothing 29 14.5 14.5 14.5
Film Annually 77 38.5 38.5 53.0
Film and Park Annually 67 33.5 33.5 86.5
Film and Park Semi-Annually 27 13.5 13.5 100
Total 200 100 100.0

27. Results

28. Variable
Z
Value P Value
Income Level After - Income Level
Before
-
7.632b 0
Consumption after - Consumption
before
-
2.858b 0.005
Medical Facility After - Medical
Facility Before
-
6.633b 0
Social issues after - Social issues
before
-
8.374b 0
General Conditions After - General
Conditions Before
-
10.440
b 0
Transport issues After – Transport
tissues Before
-
8.944b 0
-1

29. Conclusion
Positive Impact Of Micro Credit On
Poverty Status Of The Borrowers
Micro Credit Has Reduced The
Overall Poverty Level By 3.07
Percentage Points
 Status Of The Extremely Poor
Borrowers Has Been Increased By
0.63 Percentage Point

30. Thank
you