CREB - Center for Research in Economics and Business

Microcredit and Microsaving for Microenterprises in Pakistan: Findings from Framed Field Experiments in Pakistan

Project members:
Farah Said, Lahore School of Economics
Uzma Afzal, Lahore School of Economics/University of Nottingham
Marcel Fafchamps, Stanford
Giovanna d'Adda, University of Milan
Simon Quinn, University of Oxford

They are designing a Randomized Control Trial in 4 districts of Punjab to compare the effectiveness of micro-savings and micro-loans as means for households to manage risk and liquidity. The study was being conducted in collaboration with the National Rural Support Programme (NRSP) funded by the Department for International Development (DfID) and Economic and Social Research Council (ESRC). The study explores the role of commitment and reminders in product takeup and repayment. This project builds on existing research and pilots funded by the International Growth Centre (IGC) with a sample of microfinance clients of NRSP. Results indicate that for microfinance clients, savings and credit products are often substitutes, satisfying the same underlying demand for a regular schedule of deposits and a lump-sum withdrawal.

Two Sides of the Same Rupee? Comparing Demand for Microcredit and Microsaving in a Framed Field Experiment in Rural Pakistan published in the Economic Journal
View Report on the Pilot Project in Sargodha
Two Sides of the Same Rupee? Comparing Demand for Microcredit and Microsaving in a Framed Field Experiment in Rural Pakistan BREAD Working Paper No. 449
View CSAE working paper
View IGC project page