Paper short abstract:

A qualitative exploration of the consequences of pandemic on the rural livelihood of microfinance borrowers in the context of economic and social factors; private MF providers and state interventions in Pakistan

Paper long abstract:

This Qualitative study assess the impact of Covid-19, and how it resulted in the loss of income for micro-entrepreneurs in rural areas. Based on first-hand primary data collected through a series of semi-structured interviews with microfinance beneficiaries, during the lock-down, provides a deep insight to how the lives of poor were impacted across different dimensions of well-being. Among other aspects, respondents mentioned how their businesses were negatively impacted due to the lock-down and how it affected them. They were also very clear in terms of the State-led initiatives to provide them support through the ‘Ehsaas’ programme. Some mentioned about other forms of aid that they received through different charitable organisations and NGOs, etc. A profound sentiment that borrowers exhibited related to the treatment that they faced by their respective lenders. Savings and the rising cost of living and the ensuing impact on their stress levels was also repeatedly mentioned. The paper offers important public policy-related implications and provides avenues for further research.