Empowering Communities through Akhuwat Foundation's Microfinance Initiative in Bhakkar, Punjab
DOI:
https://doi.org/10.58329/criss.v3i3.173Abstract
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Poverty is a global problem with several facets that affect millions of people worldwide. This study investigates the role of microfinance, mostly through the Akhuwat Foundation, in reducing poverty in the undeveloped district of Bhakkar, South Punjab, Pakistan. Akhuwat Foundation provides small loans to the needy to raise them out of poverty. This qualitative study takes an interpretive social science method, combining a meta-analysis of relevant literature with in-depth interviews of stakeholders using open-ended questions. According to the data, recipients primarily use these loans to start businesses, which leads to increased income and, as a result, poverty alleviation. However, limited resources limit the extent of lending, demanding increased loan-giving capacity to reach more people in need. Moreover, respondents require further training in business management or entrepreneurial capacities, which is not addressed by microfinance institutions such as Akhuwat Foundation before loan acceptance. Pre-loan training is required for optimum use of funds for business purposes, which limits microfinance's potential influence on poverty alleviation.
Keywords:
Akhuwat foundation, Capacity building, Entrepreneurial skills, Loan utilization, Poverty alleviation
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