Does Microfinance Economically Empower Women: Evidence from District Multan, Pakistan

Abstract

Pakistan is a male dominated society and women empowerment is need of time for development and economic growth. Females are more than 50 percent of Pakistan’s aggregate population. On an average, the condition of women of Pakistan is one of systemic subordination of gender. Microfinance plays a crucial role in improving women empowerment through making their position economically strong inside and outside the homes. Multan city is 3rd largest in Punjab province and during the past few decades, Multan has grown in all directions like in the industrial sector, education sector, infrastructure, banking sector, health sector and in trade and commerce. Using the quantitative data from Multan, this research study empirically investigates the microfinance loan’s services impact on the women economic empowerment of Pakistan in the context of Multan, Pakistan. This research study uses different indicators of economic empowerment to measure women economic empowerment and shows that women members of microfinance institutions (MFIs) are more empowered compared to non- members. In the total of 300 women, 200 women are participants of MFI and 100 women are non-participants of MFI in the questionnaire survey. The obtained data is analyzed by using Independent-samples t-test as it is the comparison of two different independent groups. Overall the results show that there is a positive relationship between MFI and women economic empowerment in Multan. Women participants of MFI have greater role in decision making, more autonomy in mobility, greater control over income and savings generated from income generating activities, more role in employment generation and increased ownership of productive assets and property.