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  3. Impact Assessment of Microfinance Institutions: A Case Study of Akhuwat
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Saqib Masud

Impact Assessment of Microfinance Institutions: A Case Study of Akhuwat

This study is conducted for impact assessment of Akhuwat in Faisalabad, as it is Manchester of Pakistan. This study will assess how their clients' living standards are improved when they took loans and avail the facilities from Akhuwat. Either Akhuwat is successful in alleviating the poverty of his clients or not? Primary data is collected from this institute's customer to measure the effect of facilities provided by Akhuwat. The methodology includes accessing the various aspects of clients before and after taking the loans from Akhuwat. These aspects include Girls attending school, head of family income, total family income, meat consumption, fruit consumption, ailments, medical treatments, interaction with friends and relatives, giving credit to friends and relatives, family and friends involved in solving issues and problems, daily travel, availability of the personal vehicle, residence ownership, physical condition of houses and entertainment activities. The similar variables are combined to measure the impact. Then Wilcoxon test is applied to each variable to measure the effect before and after taking loans from Akhuwat. The results show that clients' living standards, including income level, medical facilities, transportation, relationship with friends and relatives, social issues, and general living conditions have improved after taking the loans from Akhuwat. These results show that Akhuwat successfully contributed to poverty alleviation in Faisalabad city.