Since 1990, development organizations are taking microfinance as a window of hope which could contribute to economic development. It can facilitate poverty reduction through an improved quality of life on the one hand, and women’s empowerment on the other. “Reaching and empowering women” has become one of the core objectives of the microfinance programs world wide which also contribute to the Millennium Development Goals (MDGs). It is argued that access to financial services can empower women to become more confident, assertive, more likely to participate in family and community decisions, and better able to confront systemic gender inequities. Microfinance organizations in Pakistan focus mainly on the growth and outreach. They take poverty reduction measures into account rather than focusing on the empowerment aspect of women clients. This study analyzes the significance of microfinance on women empowerment in Pakistan and evaluate whether women clients have become economically and socially empowered through the support of microfinance organizations. This study also analyzes the impact of microfinance services on the well-being of the clients’ families.

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