Empowered by opportunity, driven by determination
The Story of Wahedan from Chaudero Village
Wahedan transformed her life from hardship to stability through determination and opportunity
- In Pakistan, the demand for interest-free microfinance has grown rapidly in recent years
By Nadir Ali Shah
In the quiet village of Chaudero, Sindh, Wahedan transformed her life from hardship to stability through determination and opportunity. With support from the Enterprise Development Fund (EDF) under the EU-funded Ex-SUCCESS Program, she turned a small interest-free loan into a thriving home-based business that now sustains her family and inspires other women in her community.
Wahedan (EDF beneficiary) said, “I remember when feeding my family twice a day was difficult. Today, my shop gives us comfort, dignity, and hope.” Through the EDF interest-free loan, Wahedan turned opportunity into lasting change, building a business that now supports her entire family.
Wahedan, 40, is married and a mother of five. She completed matriculation and lives in Village Chaudero, UC Chaudero, Taluka Nasirabad, District Kamber-Shahdadkot Sindh. According to SRSO’s Poverty Scorecard Survey (PSC-2016), the village has 250 households and around 1,900 residents. About 55% of children are enrolled in school, while 45% remain out of school. Nearly 46% of households fall within the poorest PSC category (0–23). Wahedan’s own household scored 23 on the PSC, qualifying her for support under the Ex-SUCCESS Program, funded by the European Union and supported by the Government of Sindh and the Rural Support Programs Network (RSPN).
Wahedan is an active member of Community Organization (CO) Mehak, Village Organization (VO) Chaudero, and serves as President of Local Support Organization (LSO) Sobh. Between 2023 and 2025, she received three interest-free Enterprise Development Fund (EDF) loans, PKR 130,000, PKR 100,000, and PKR 300,000. With this financial support, she started a cosmetic and general store inside her home, which she operates daily from 7:00 a.m. to 9:00 p.m. She is also a BISP beneficiary, receiving PKR 12,500 quarterly for the past six years, and received a solar panel from SRSO under the Solar Home System (SHS) project. Her husband, Abdul Majeed (45), a matric-pass laborer, assists her in managing the shop and purchases wholesale items from markets in Larkana.
The Enterprise Development Fund (EDF) initiated by the Sindh Rural Support Organization (SRSO) builds on global and regional evidence that access to finance can help poor households start small businesses and improve their livelihoods. Over the past two decades, microfinance has evolved as a major development tool aimed at reducing poverty and promoting women’s economic participation. Studies from multiple countries show that microcredit enables poor families to invest in income-generating activities, accumulate productive assets, and increase household resilience. However, the long-term impact of microcredit remains mixed, as many borrowers struggle to grow their businesses beyond subsistence levels. Scholars emphasize that microfinance works best when combined with training, market access, and institutional support rather than credit alone.
With determination and support from Sindh Rural Support Organization (SRSO), Wahedan’s business has grown steadily. Her shop now offers over 30 items including cosmetics, clothes, jewelry, and household goods. The total value of her shop inventory is around PKR 1,000,000. Her daily sales average PKR 5,000, with PKR 1,000 in daily savings, resulting in monthly savings of PKR 30,000. Her husband contributes PKR 15,000 per month from labor work, while her two sons earn PKR 9,000 monthly through street vending, an initiative supported by PKR 25,000 from her third EDF loan of PKR 300,000.
During festive seasons such as Eid and wedding months, their sales rise significantly, reaching up to PKR 450,000, with savings of PKR 150,000. Their household expenses are around PKR 30,000 per month, against a combined monthly income of approximately PKR 54,000. The family also participates in a PKR 200,000 committee, contributing PKR 11,000 monthly, and has purchased a second-hand motorcycle for business use. According to her husband, “This interest-free loan (EDF) has truly empowered us financially, helping us meet our family’s basic needs with ease.”
Across South Asia, women-focused microfinance programs have been linked to improvements in household decision-making, self-confidence, and community participation. Yet, several studies caution that access to finance alone does not guarantee empowerment. Social norms, mobility restrictions, and limited exposure to markets can restrict women’s ability to benefit fully from financial inclusion. Successful models in Bangladesh, India, and Sri Lanka demonstrate that integrating microcredit with social mobilization, vocational training, and collective enterprise models leads to more sustainable outcomes. These lessons are relevant for SRSO’s approach, which embeds the EDF within a broader framework of community institutions such as Community Organizations (COs), Village Organizations (VOs) and Local Support Organizations (LSOs). This structure not only facilitates financial access but also strengthens social capital, trust, and collective decision-making among rural women.
Wahedan and her husband plan to apply for another EDF interest free loan of PKR 1,000,000 to start a fairy clothes business. They aim to expand their household income and create bright future for their children. In Wahedan’s words, “I am confident and determined now to start another small business from the EDF interest free loan to get maximum financial benefits and economic strengthening support for my household. I feel so empowered with this opportunity of EDF.”
In Pakistan, the demand for interest-free microfinance has grown rapidly in recent years. Research shows that interest-free credit (Qarz-e-Hasan) enhances participation among low-income and conservative households that might otherwise avoid conventional microfinance due to religious or social concerns. Evaluations of interest-free loan schemes in Punjab and Khyber Pakhtunkhwa reveal increases in small business activity and asset ownership, particularly among women engaged in livestock and home-based enterprises. Within this national context, SRSO’s EDF model stands out for combining financial inclusion with social mobilization and technical support. Evidence from SRSO’s monitoring reports (2023) indicates that EDF participants have improved household incomes and demonstrated stronger financial independence. However, limited empirical research has examined the long-term impacts of EDF on poverty reduction and empowerment. Future studies are therefore needed to assess the sustainability, scalability, and equity outcomes of interest-free enterprise financing in rural Sindh.
Read: Strategy to Combat Rural Poverty
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Nadir Ali Shah is an Anthropologist and works as a Regional MER Professional at Sindh Rural Support Organization (SRSO). He can be reached at naadir.shaah@gmail.com
