187 Vol. 6, Issue 2 ISSN 2414-2336 (Print), ISSN 2523-2525 (Online) IMPACT OF MICROFINANCE ON POVERTY: EVIDENCE FROM RURAL PAKISTAN Wajid Khan, University of Baltistan Skardu, Pakistan. Email: wajiduomm@gmail.com Muhammad Yar Khan, Assistant Professor COMSATS University Islamabad, Wah Campus, Pakistan. Email: muhammadyar@ciitwah.edu.pk Anam Javeed, Assistant Professor, Management Sciences, University of Wah, Wah Cant., Pakistan. Email: aanam.javeed@hotmail.com Zahir Ullah, Lecturer, Department of Business Management, University Of Baltistan Skardu, Pakistan. Email: zahir.ullah@uobs.edu.pk Abstract. This study aims at finding out the socio-economic impact of microfinance services, offered by MFIs, in one of the poorest districts of Pakistan. A sample of 344 respondents has been selected for this purpose. The study takes children's nutrition and education expenditures, savings of clients, and investment of loan as explained variables. Our findings show that microfinance services have myriad influences on the subsistence of the poor. Though respondents have concerns over the performance of MFIs, the overall impact goes in concord with the results of previous studies. This study validates the relationship between microfinance and poverty alleviation. Keywords: Microfinance Institutions, Poverty, Income/ Price Policy 1. Introduction Microfinance is supposed to provide financial access to low-income communities aiming at providing them with chances of self-employment to combat poverty. Microfinance has been in discussion since 1970, and the first services are considered to have been introduced by Dr. Muhammad Younas in 1976 in Bangladesh. Younas' initiatives were revolutionary in the field of microfinance in many ways: they were only for the poor, free of charges; and without collateral as a security. These outstanding features lent quick popularity to the scheme among the poor communities of Bangladesh. At the beginning, inspired by Grameen bank, these loans were small in quantity and personal in nature and were extended to the poor people of the village to start direct income activities, like making pots, stools, and various agriculture-use equipment. Microcredit though helps the poor’s but these benefits were found no uniform. Initial income was identified as a key determinant which Received 31 August 2020 Accepted 8 December 2020