Microfinance best tool to reduce poverty: Khalid Mehmood

ISLAMABAD, April 10: President Society Watch Khalid Mehmood on Sunday said microfinance is one of the best tools to reduce poverty in the country but some of the institutions continue to ignore poor.
Government should take poverty eradication as a challenge and change situation through proper interventions, he said.
In a statement issued on Sunday he said that gender discrimination is a persistent problem faced by women all over the world including Pakistan.
Khalid Mehmood said that the role of microfinance in empowering women to lift them out of poverty cannot be overemphasized but some institutions prefer lip service.
Microfinance brings about changes in lives, household condition, family wellbeing and social status but majority is unable to avail the services of microfinance institutions.
He said that 56 per cent of the adult population has no access to formal financial services with women worst hit, only 10 per cent of SMEs are served by banks resulting in socio-economic disparities.
Microcredit can cause reduction in interest rates by 30-60 per cent and increase the level of savings among the poor, he informed. We believe that microfinance is a sustainable means of poverty alleviation leading to sustainable development, he said. -SABAH