Microfinance Institutions as a Strategic Tool to Enhance Women’s Career Development in Pakistan

Abstract

In recent decades, several institutions have been advocating for women's right to development. However, the fact that such efforts have made such little headway is very disappointing, and the female communities, particularly in most developing countries, such as Pakistan, exist in very vulnerable conditions. In developed countries such as the USA and the UK, women's contribution to the national economy is approximately 50%. However, in Pakistan, because of low levels of career development, this figure is only 25%-30%. Therefore, the prime objective of the current study is to examine the role of microfinance institutions in women's career development in Pakistan. Using area cluster sampling, 500 questionnaires were distributed among female clients of microfinance institutions in Pakistan: 259 were distributed in Punjab, 167 in Sindh, and 74 in Balochistan. The data analysis conducted using PLS-SEM revealed that services provided by microfinance institutions, including micro-credit, micro-savings, and micro-insurance, make a key contribution to women's career development. Moreover, women's micro-enterprises and women's education have related roles in enhancing microfinance institutions' positive contribution to women's career development. However, vulnerability is one of the factors limiting women's career development. The current study is beneficial for microfinance institutions, the government of Pakistan, and gender lobbies in clarifying strategies to promote women career development by reducing gender discrimination.