Financial and social efficiency of microcredit programs of partner organizations of Pakistan Poverty Alleviation Fund.

Ali, Zulfiqar, Asif, Muhammad ORCID: 0000-0002-6458-5154, Nazir, Naila, Rehman Irshad, Ateeq Ur, Ullah, Ikram and Ahmad, Shabir (2023) Financial and social efficiency of microcredit programs of partner organizations of Pakistan Poverty Alleviation Fund. PloS one, 18 (3). e0280731-e0280731.

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Official URL: http://dx.doi.org/10.1371/journal.pone.0280731

Abstract

This paper examines the financial and social efficiency of the microcredit programs offered by the Pakistan Poverty Alleviation Fund partner organizations. Panel data concerning variables of interest are collected from Pakistan Microfinance Network, covering a minimum of 14 partner organizations (in 2005) to a maximum of 35 partner organizations (in 2014). The data is analyzed using the Data Envelopment Analysis, assuming both constant and variable returns to scale scenarios and the operational scale of the partner organizations. Trends in average efficiency scores have been analyzed to assess the mission drift of the partner organizations. Results reveal that managerial inefficiency is more pronounced than the sub-optimal production scale in all three scenarios under consideration. Moreover, trends in the efficiency scores indicated a slight mission drift of the microfinance providers. About 77.5% of the partner organizations were financially sustainable over the entire study period. The study recommends providing objective-oriented training, workshops, and seminars for managing microfinance providers.

Item Type:	Article
Uncontrolled Keywords:	Poverty, Financial Management, Organizations, Pakistan
Divisions:	Faculty of Humanities and Social Sciences > School of Management
Depositing User:	Symplectic Admin
Date Deposited:	11 Apr 2023 10:01
Last Modified:	19 May 2023 12:20
DOI:	10.1371/journal.pone.0280731
Related URLs:	Author Publisher
URI:	https://livrepository.liverpool.ac.uk/id/eprint/3169503