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

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...

Full description

Saved in:
Bibliographic Details
Published in:PloS one 2023-03, Vol.18 (3), p.e0280731-e0280731
Main Authors: Ali, Zulfiqar, Asif, Muhammad, Nazir, Naila, Rehman Irshad, Ateeq Ur, Ullah, Ikram, Ahmad, Shabir
Format: Article
Language:English
Subjects:
Annual reports
Biology and Life Sciences
Data analysis
Data envelopment analysis
Ecology and Environmental Sciences
Economic conditions
Efficiency
Financial institutions
Financial Management
Influence
Management
Microfinance
Organizations
Pakistan
People and Places
Performance evaluation
Poverty
Poverty - prevention & control
Social Sciences
Trends
Variables
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary: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.
ISSN:1932-6203
1932-6203
DOI:10.1371/journal.pone.0280731