Empowering Rural Lives: A Qualitative Study on the Impacts of Microfinance on Poverty Alleviation in Peshawar, Pakistan

Abstract

This qualitative study examines the effects of microfinance on poverty alleviation in rural Peshawar, Pakistan, utilizing in-depth semi-structured interviews with 20 beneficiaries and program administrators. This research used thematic analysis to examine participants' lived experiences and perceptions, emphasizing economic and social empowerment, encountered challenges, perceived impacts on well-being, and the dynamics of microfinance programs. The findings indicate that microfinance plays a crucial role in economic empowerment through the improvement of income generation, asset accumulation, and business development, especially among women. Social empowerment manifests in augmented decision-making authority, elevated social standing, and improved access to vital services. Participants encounter challenges including difficulties in loan repayment, restricted market access, and institutional obstacles, which are intensified by inflation. Microfinance, despite its challenges, has a positive impact on living standards, psychological well-being, and children's educational opportunities. This study highlights the significance of flexible repayment schedules, support for market access, streamlined institutional procedures, and comprehensive training programs to enhance the effectiveness of microfinance interventions. The study recommends customized support mechanisms, improved training and policy interventions to foster an environment conducive to sustainable poverty alleviation. This study underscores the critical importance of microfinance in empowering rural communities, while also stressing the necessity for context-specific strategies and continuous support to guarantee sustained results.