Abstract
The purpose of this research article is to analyze the role of micro-credit in poverty alleviation and its impact on the rural economy of Pakistan. This research is carried out on primary and secondary data. The research was conducted in six villages on random sample of 180 respondents in District Thatta during the year 2003-2004 regarding micro credit experience of National Rural Support Program (NRSP). The average size of the family in surveyed villages was 07 respectively. The annual income of the growers after getting the loan increased from Rs. 25,00/- to Rs. 35,100/- livestock owner from Rs. 29,400/- to Rs. 45,000/- and the enterprises from Rs. 25,500/- to Rs. 39,900/-. Their average monthly income stood at Rs. 2925, Rs. 3750 and Rs. 3325/- respectively. The increased income is measured on calorie-based approach in order to know the reduction rate of the poverty. According to this approach, a person requires an average of 2350 calorie per day and Rs. 1500/= are needed per month as described by the planning commission of Pakistan. This indicates that each household hardly meets calories requirements leaving the other basic needs. It is revealed that micro-credit is not enough to reduce the poverty in rural Sindh. So, it needs further concrete measures to alleviate the poverty.
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