Sustainable Development and an effective Public Policy decision play a key role in the ability of a country and/or organization to manage the governing machine and the effects on the governing apparatus in the Microfinancing organization/populous. Pakistan stands at a critical juncture in history in terms of transition to a democratic form of governance. The dynamics of decision-making by the government/organizations have always fascinated me. Keeping in view how these decisions have their short, medium, and long-term impacts on individuals and different interest groups of the entire population. It leads my curiosity in understanding the issues, needs, priorities, and resources that consequently affect the stakeholders included apparatus, organizations. And the target population (beneficiaries) in both positive and negative ways.
Micro Small Medium Enterprises (MSME) has a great role in the economic development and promotion of global prosperity of a country. The major role in terms of production, employment generation, contribution to exports. And distribution of income is very critical for any economy in the world especially the third world countries. The major problems faced by Pakistan are hunger, poverty, illiteracy, poor health condition, unemployment, corruption, declining investment, and inefficient leadership. These challenges compel the poor people to live a vulnerable life which leads the youngsters to quit their lives by committing suicide, addict drug usage, or involving in crime that causes mental health problems. Issues of this kind create social and political problems at the local, regional, national, and global levels. MSME development is one of the core functions to promote global prosperity by enabling individuals at the local, regional, national, and global scale. I strongly believe that there is enormous potential in Pakistan MSME The industry needs a thorough researched based study with high-quality standards to focus on technological innovation in the microfinancing MSME Industry.
Microfinancing has played a significant role in lending and empowering the neglected/marginalized segment of the economy; focusing on excluded/denied access to financial intermediaries. It has a multidimensional impact on borrower’s life, household, and communities at large and its diversified products are contributing to change in society. According to different studies, drastic changes have been seen in the field of health, socio-economic condition, education, and environment and very positive results in reducing the poverty line. I believe small scale loans, savings, and insurance have an amazing impact in improving the quality of life of its borrowers and can serve many needs when available to the people, in addition, SME loans should be specifically given to women’s to get them more empowered and initiate to mainstream women’s in the society by giving them a chance to raise their voice in bring prosperity in the society/community.
The internet has emerged as a widely recognized distribution channel for the Microfinancing banking industry and all traditional banks & new players are discovering its effectiveness. Digital financial services through mobile phones, personal computers, the internet, or cards linked to a reliable digital payment system are the future of the banking industry and can lead to greater financial inclusion; in the developing world, the majority own a mobile phone than have access to electricity or clean water. It has the potential to provide affordable, convenient, and secure banking services and can also lead to greater economic stability. And increased financial inter-mediation for both customers and the economy.
Writer: Kamal Uddin Mughanni
