Fifty-eight-year-old widow Arza Parveen wasted no time building a life of resilience and independence after her husband was injured in war. Her family was left without financial support. With a microfinance loan from Pakistan¡¯s Kashf Foundation, Arza established a neighborhood kiryana, or a small general store selling groceries and sundries. She now earns a steady monthly income.
¡°I had many difficulties because my husband was injured in war, and I had no money,¡± says Arza. ¡°I want to give this message to all women that if you want to move forward, then contact Kashf, take a loan, and move forward like I am doing. If money comes, the country will develop.¡±
For widows like Azra, the microfinance loan served as a lifeline. She is in the country who leverage microfinancing to succeed in business and life.
Arza¡¯s story is echoed by Anila Naz, a hairdresser from Islamabad. For Anila, a microfinance loan from HBL Microfinance Bank provided the opportunity her life needed. ¡°I was a zero, and now I¡¯m a hero,¡± says Anila, who owned a thriving beauty salon in Islamabad until the COVID-19 pandemic disrupted her operations. The microfinance loan has helped her expand her business.
Anila urges other women: ¡°Our daughters and women should take a loan and advance their skills.¡±
Microfinance¡ªproviding small loans ($10-$2000) to the poorest¡ªis a significant sector in Pakistan, serving 76 percent of individual borrowers and over .
However, , and the country has . Only ; dropping to . Recent macroeconomic instability, exacerbated by the devastating 2022 floods, has increased fiscal demands and reduced lending to small and medium-sized enterprises (SMEs), such as those owned by Anila and Arza, .
Microfinance as an Agent of Inclusive Growth
Microfinance empowers vulnerable citizens like Anila and Arza by providing access to financial services that foster business growth and ultimately help reduce household poverty. It enhances women's economic participation and independence, driving national growth. The Kashf Foundation¡¯s revealed that repeat borrowing reduced poverty in at least 40 percent of client households in Pakistan, while 90 percent of women reported increased business income.