Contrary to popular belief, debt can play an important role in building wealth and enabling upward mobility. When non-usurious, it provides access to education or the startup funds needed to launch new businesses. In the United States, the average small business loan is $458,497. However, in many parts of Asia and the developing world, the loan amount can be small and still have a massive impact.

Microloans can range from $50 to about $50,000. They primarily target underfunded groups, such as women and rural communities. There is ongoing debate about the effectiveness of microloans and as with any system, some bad actors attempt to misuse them. Nevertheless, they currently remain one of the more ethical ways to provide capital to underserved communities.

The gender pay gap is entrenched in the world’s economy. Nowhere is this more true than in Pakistan. Pakistan currently ranks last in overall gender parity.

About Roshaneh Zafar 

Roshaneh Zafar is a Wharton-educated social entrepreneur who helped build a microfinance empire in Pakistan. While Zafar may not have humble origins, she strives to empower women across Pakistan through her work. After earning her graduate degree from Wharton, Zafar worked on Wall Street. However, she became disillusioned with the social impact of investment banking.

She transitioned to social development at the World Bank, where her work against poverty began. Eventually, she would come in contact with Muhammad Yunus, the founder of microfinance and a Nobel Peace Prize winner. Following in his footsteps, she would ignore naysayers and go on to start the microfinance empire known as the Kashf Foundation.

The Kashf Foundation

The Kashf Foundation is a Pakistan-based organization that strives to counter gender inequality in one of the most stratified nations in the world. It aims to bring financial tools, such as microfinance and microinsurance, to female entrepreneurs throughout Pakistan. Access to these tools is just the beginning, as proper education and management are crucial to the success of any company. The Kashf Foundation offers “capacity building,” educational programs that build the skills necessary for operating and growing a business.

Initially, the Kashf Foundation mimicked many of the practices of Yunus’ Grameen Bank. However, since its formation in 1996, the foundation has become a microfinance empire in its own right. Different populations require different solutions. Many told Zafar that microfinance would never work in Pakistan. As of August 2024, the Kashf Foundation has a staff of 4,500 people.

It has worked with more than seven million micro-entrepreneurs and provided almost $1 billion in financing. Not only is the Kashf Foundation a microfinance institution, but it also uses media to raise awareness about social issues in Pakistan. Its television series “Udaari,” focusing on child sexual exploitation, was named one of the most popular programs in 2016.

Final Remarks

The Kashf Foundation and Zafar have received numerous awards, including the Mehergarh Award for Leaders of Change and the COVID-19 Action Award. Their impact extends beyond their own employees. Rizwana Bibi, a Kashf client, won the N-Peace Award in 2016 for her community work in female empowerment.

– Patrick Feeney

Patrick is based in Los Angeles, CA, USA and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr