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Microfinance Institutes are equally important in Pakistan for mitigating poverty and bringing economic well-being in society. These institutions are working effectively to enable poor people to earn reasonably and try to overcome the level of poverty (Interim poverty reduction strategy paper, 2001). The purpose of MFIs is not only to cater the neediness in Pakistan but it is rather additionally more concerned with enhancing the status of female and mobilizing resources for convenient paying of wages (Chen, 1992 & Geetha, 2006). According to Microfinance Institutions Ordinance (2001), the main essence of microfinance is assisting the poor people, particularly female of society through advancing social well-being and equity in monetary rewards for growth and empowerment. The need of microfinance is overlooked by the incumbent commercial banks in terms of enhancing the value of the poor through microlending and augmenting thrifts for the overall well-being of society (Schreiner & Colom-bet, 2001). According to United Nations Development Program (UNDP) and World Bank (WB), mitigating and lessening the sufferings of the poor requires an organized monetary program that could uplift the livelihood of the people in terms of human capital, political and social consciousness (Perry & World Bank, 2006). Microfinance Institutions’ main objective is poverty alleviations by empowering individuals through effective sustainable reasonable livelihood (Waweru & Spraakman, 2012). This entails working for that financially vulnerable class of the society who could not afford to conveniently achieve the economic status defined by the world according to the level of poverty. Financial sustainability of MFIs is usually catered through loans to the financially disadvantaged people with a view to generate sufficient income to overcome all the requisite expenses of livelihood and furthermore to generate Abstract

Financial sustainability and microfinance institutions from an emerging market