INFLUENCE OF FINANCIAL INSTITUTION ON WOMEN EMPOWERMENT: A CASE STUDY OF VILLAGE BANK SALAMPUR SWAT, KP

Abstract

In Pakistan, women constitute more than half of the total population, with the majority residing in rural areas. However, their participation in economic activities remains largely invisible, as their contributions are often unpaid and unrecognized. Women in rural Pakistan face significant socio-cultural constraints that limit their ability to engage in business or participate in formal economic activities outside their homes. Consequently, the economic burden falls  disproportionately on men, who alone cannot sustain this responsibility. According to the Khyber Pakhtunkhwa Bureau of Statistics, over 45% of the population in Pakistan lives below the poverty line, with women representing the majority of those affected by poverty. Addressing this issue requires targeted empowerment initiatives to integrate women into the economic framework. One such initiative is the establishment of Community-Based Financial Intermediaries, which provide sustainable and locally accessible financial services tailored to women in rural areas. The present study employs a mixed-methods research approach to examine the effectiveness of these intermediaries in enhancing women's economic empowerment. Qualitative data was collected through case studies, capturing firsthand experiences of the respondents. Quantitative data was obtained from multiple sources, including SRSP (Sarhad Rural Support Programme) anecdotal records, which provided insights into cost-effectiveness, sustainability, and loan recovery rates. Additionally, primary data was gathered from respondents using the Poverty Score Card developed for Pakistan by the World Bank, with historical poverty scores retrieved from SRSP records for comparative analysis. The findings of this study indicate that the Village Bank model has a significant impact on the economic, social, and political dimensions of women's lives. These factors are essential for fostering empowerment, demonstrating that financial inclusion through localized, community-driven financial intermediaries can serve as a viable strategy for improving the socio-economic conditions of women in rural Pakistan.