This study reviews the growth strategies and their effect on the
efficiency and productivity of the microfinance sector of Pakistan. The
sector needs to have adopted intensive growth strategy instead of extensive strategies of
wide expansion in term of physical infrastructure and human resources, which had
increased the financial sustainability risks for the credit constrain institutions. The sixdimension model of outreach used in this study also
shows that the sector does not achieve the targets set
forth for these micro finance institutes with respect to its
active borrowers’ outreach. The sector has mainly
focused the big cities and urban areas whereas the
poverty levels are higher in rural areas. The
government has also shown its interest by launching
two different types of loan schemes. Among the three
different types of institution, the microfinance banks
dominate the sector.
1-Adnan Ahmad Assistant Professor, Institute of Business Studies and Leadership, Abdul Wali Khan University Mardan, KP, Pakistan.2-Muhammad Ilyas Lecturer, Institute of Business Studies and Leadership, Abdul Wali Khan University Mardan, KP, Pakistan.3-Muhammad Nisar Khan Lecturer Department of Management Studies, Bacha Khan University Charsadda, KP, Pakistan.