Measuring the Performance of Poverty Reduction Programs in Rural Pakistan

Microfinancing is an essential tool for poverty alleviation in society to address this humanitarian problem in the world. This study investigates the fundamental factors contributing to poverty, along with exploring the efficient model of how to provide financial assistance to these determinants to overcome poverty. The result is investigated by applying the simple logit model and logit forward conditional model to primary data that was collected during survey conduct in rural parts of Pakistan. It is revealed from the empirical analysis that schooling level, household size, occupation, gender, and age are significant determinants of poverty. It is also observed that Zakat institutions has been developing human capital through skill development in the Vocational Training Institute, which is a very effective way to overcome poverty. This chapter concluded that human capital development through education and skill development is the best strategy to enhance income so that the productive poor overwhelmed insufficiency in Pakistan’s rural areas.