CREB - Center for Research in Economics and Business

Microcredit and Microsaving for Microenterprises in Pakistan

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

This study used 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 (Published in Economic Journal: and working paper available here: