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  3. Assessment of Operational Efficiency of MFBs in Pakistan
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Amer Shakeel

Assessment of Operational Efficiency of MFBs in Pakistan

In this study, I assessed the operational performance of nine microfinance banks operating in Pakistan. The period of study was from 2019 to 2023. Data was taken from published financial statements of these banks. I took Number of Employees and Total Assets as inputs and Financial Revenue and Gross Loan Portfolio as outputs. For the purpose of measurement of operational efficiency, Data Envelopment Analysis (DEA) Technique is used. As per results, on average of three years, Khushhali Bank is considered as the better performing bank than other banks. Apna, Finca, First Microfinance, NRSP Bank, and Tameer Bank have also better performance scores. Waseela, Pak Oman and New Micro did not perform well operationally. For the purpose to achieve better operational efficiency, these banks need to make their decision-making process better and use their inputs efficiently. Keywords: MFI, MFB, DEA, inputs, outputs, and poverty.