Challenges and Opportunities to Microfinance Institutions in Khyber Pakhtunkhwa Province, Pakistan

Abstract

This study explored the challenges and opportunities faced by microfinance institutions in Khyber Pakhtunkhwa province of Pakistan. For a developing country like Pakistan, the development of its microfinance sector is a step towards its sustainable development. This study identified various challenges face by the microfinance sectors, which includes social challenges, political instability, terrorism, low literacy rate, procedures and documentations, terms and conditions etc. There are also potential growth opportunities for this sector which includes poverty alleviation, economic development, Islamic financing and entrepreneurship. The development of this sector will further stimulate the economic development of the economy.

Keywords: Microfinance, Khyber Pakhtunkhwa, Pakistan, Challenges, Opportunities.