Microfinance and Self-Help Finance System to Reduce Poverty from Pakistan: An IT-Based Solution

This paper suggests computer-based solutions to reduce poverty in Pakistan.

There are several examples of successful self-help financing blended with donor finance in Pakistan. The Grameen Bank model is also being replicated in Pakistan, with some modifications. The paper emphasizes that:

• Computer technology can be fruitfully utilized for proper management of various microfinance projects;
• NADRA e-Sahulat and Telenor’s Easy paisa are accurate in their financial transactions and have the capability to help the poor;
• Establishing a microfinance bank, with small deposits plus donor’s funds would be useful;
• Suggested microfinance bank would be electronically managed by NGOs and controlled by people’s organizations in villages.

The latest technology and facilities are already present in Pakistan, but these will need modifications and further innovations to be fruitful. By reducing manpower, intermediate expenditure and irregularities, technology will help save funds that can be put to welfare-maximizing uses. Finally, technology will help national and international donor agencies to get accurate real-time information relating to the dissemination of their funds, with increased efficiency and decreased management expenditure.