DAWN Archive: Micro-finance in Pakistan

A Micro-Credit Success Story
By Zofeen T. Ibrahim

When Shamim Akhtar’s 20-year-old daughter developed an acute case of ulcers, last year, and had to be hospitalised, she had little choice but to approach a neighbourhood moneylender and borrow Rs20,000. Her husband was unemployed at that time.

At 200 percent interest rate, it meant that she had to pay Rs.2,000 to the moneylender every month. In 18 months she had paid Rs36,000 as interest, but the principal amount she owed the moneylender remained unchanged.