Understanding the Drivers of Financial Sustainability in Pakistan’s Microfinance Industry

Abstract

Microfinance institutions (MFIs) play a fundamental role in advancing financial inclusion, particularly in developing economies like Pakistan. This study investigates the financial sustainability of MFIs, highlighting their ability to balance social missions with economic viability. Using innovative statistical analyses, such as regression models and ANOVA, this research explores key bases of sustainability, including operational efficiency, regulatory frameworks, and external economic factors. Findings reveal significant relationships between these variables, providing critical understandings into the challenges and opportunities for MFIs in Pakistan. The study contributes to the address on financial inclusion by offering actionable recommendations for policymakers and consultants aiming to enhance the subdivision's sustainability.