By Shamim Saleem
Abstract
Microfinance has been identified as an important policy instrument that allows greater financial and social independence for poor and destitute by facilitating access to financial services for rural class. Microfinance institutions (MFIs) have mostly high concentration on providing self financing that generally is for women beneficiaries and aim at alleviation of poverty in all its forms. The principle purpose of microfinance institutions is to be social performing by reducing poverty. However, they have to reconcile this objective with financial performance by trying to be profitable and sustainable. The research paper is based on qualitative research. The researcher chose Pakistan and studied its agriculture financial sector, identified problems with present financial system developed a financial model based on Musharakh and Ijarah for farmers particularly and for sustainable development of rural in general where bank will provide all the assistance that includes technical as well as other assistance. It will provide credible alternative which allows poor population to have access to basic financial services at low cost.
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