Source: Microfinance Focus
"Although microfinance has made some gains in alleviating poverty in Pakistan, the amount invested lies in danger of being spent on daily items owing to extreme poverty. What in fact is required is the provision of certain services that may enable an individual to become a self-earner. So the first and foremost thing in this regard is not to simply extend credit but to provide raw materials along with skills.
What could further be added is the provision of health and education facilities to the community so that each individual keeps on learning during this process. By adopting this method, microfinance becomes a well-organized business as well as a community service and the incidence of default is reduced."
Full article: http://www.microfinancefocus.com/news/2010/02/03/opinion-reinventing-microfinance-in-pakistan/