IBT Journal of Business Studies (IBT-JBS)
E-ISSN: 2409-6520; P-ISSN: 2414-8393
Page | 151
The material presented by the author(s) does not necessarily portray the view point of the editors
and the management of the ILMA University, Pakistan.
2409-6520 (Online) 2414-8393 (Print) ©2020, published by the ILMA University, Pakistan.
This is open access article under the license. https://creativecommons.org/licenses/by/4.0/
Performance of Microfnance Providers in Sindh, Pakistan: A
Study of Formal and Informal Microfnance Institutes
___________________________________________
Received: 25-Nov-2019 | Accepted: 10-Jul-2020
Ghazala Tunio
1*
| Ahmed Shafique Joyo
2
| Zhang Lei
3
|
Nizamuddin Channa
4
| Noor Ahmed
5
Abstract
This research aims to analyze the performance of microfinance providers of the Sindh province
of Pakistan. For this purpose, the formal and informal microfinance institutes were selected.
Data was gathered from a sample of 150 managers of microfinance banks and institutions. In
this research, the random sampling technique is used to collect the data through questionnaires.
The OLS regression model is employed to analyze the data. The results of this study show
that the number of branches and fewer defaulters significantly affect the performance of
microfinance institutes in Sindh, Pakistan. Moreover, the total cost also has an important
relationship with the performance of microfinance organizations in Sindh. However, the study
finds the interest rate, and more diversified financial services to have no significant impact
on the performance of microfinance organizations. Due to the lack of financial information
of the microfinance institutions in Sindh, there is a dearth of research on the performance
of microfinance institutions. Rather than using only the published financial information, this
study relies on the information provided by the managers of the microfinance providers for the
analysis. The results of this study have implications for the well-functioning of microfinance
institutes, and for the government to achieve the poverty alleviation objectives in Pakistan.
Keywords: Microfinance institutes, Firm’s Performance, Sindh, Pakistan, Poverty.
JEL Classification: H11, E42, G18, G28, G38
Volume 16:01, 151-170 (2020)
DOI: 10.46745/ilma.jbs.2020.16.01.11
Author’s Affliation:
Institution: University of Sindh
1,5,6
| Shaheed Benazir Bhutto University
2
| University of Finance and
Economics Nanjing
4
Country: Pakistan | Pakistan | China
Corresponding Author’s Email: *ghazala.tunio@faculty.muet.edu.pk