Rural women are benefiting from the Community Investment Fund, a micro-investment loan for income-generating activities
By Nadir Ali Shah
Field evidence indicates that rural women are benefiting from the Community Investment Fund (CIF), a micro-investment loan for income-generating activities previously under the EU-SUCCESS program.
Ms. Irshad Khatoon (CIF beneficiary), shared, “After my husband’s passing, my family endured extreme poverty and hardships. We saw no way out until the SRSO team visited, enrolled me as a CO member, and introduced me to the CIF and its advantages. I have accessed the CIF five times, which has financially supported my family. This interest-free loan has empowered us, helping us earn enough to cover our household expenses.”
The Bukhsho Sario settlement, located in Hyder Chandio Union Council, Taluka Sijawal, District Kamber-Shahdadkot, Sindh, has 191 households with a population of 1,205, including 307 women, 302 men, 272 girls, and 324 boys, as per a Poverty Scorecard Survey (PSC) conducted by Sindh Rural Support Organization (SRSO) in 2016. Among them, 2 women, 7 men, 2 girls, and 3 boys are disabled. Based on this PSC, CIF beneficiaries are 208 who are benefiting from the fund, with a total loan amount of PKR 5,500,000 disbursed five times since 2018. The recovered CIF loan amount is approximately PKR 2,937,000, with PKR 2,563,000 still outstanding.
The Community Investment Fund (CIF), previously part of the EU-funded SUCCESS program, provides interest-free capital grants to women-led community institutions in rural Sindh. Uniquely, the CIF is managed by women-led CIs, empowering them to decide loan allocations and set flexible repayment terms. The fund operates as a revolving loan; it targets the poorest households (PSC 0-23) for income-generating activities, with eligibility determined through the Poverty Score Card (PSC).
According to the World Bank’s Poverty & Equity Brief, Pakistan’s poverty rate in fiscal year 2025 is estimated at 42.4% (based on the US$3.65/day 2017 PPP), nearly unchanged from the previous year. With a population growth rate of almost 2% annually, this equates to an additional 1.9 million people falling into poverty this year. Despite economic stabilization and declining inflation, Pakistan’s 2.6% economic growth is insufficient to alleviate poverty. The Washington-based Global Lender reports that Pakistan’s poverty rate increases to 44.7%, with extreme poverty rising to 16.5% from 4.9%. The new international poverty line, reflecting updated prices for goods and services, is set at $4.20 per person per day for Pakistan, a lower-middle-income country, up from $3.65 in the wake of COVID-19 and the 2022 floods.
The Pakistan Economic Survey indicates that 24.3%, or one in four Pakistanis, lives below the national poverty line. The COVID-19 pandemic has worsened this, reducing the working population from 55.74 million to 35.04 million. The survey shows Pakistan’s current gross domestic product GDP growth rate at 2.6%, projected to rise to 2.7% in fiscal year 2025. While rural poverty rates (51%) in Pakistan surpass urban ones (17%), the majority rural population relies on agriculture and livestock, primarily as sharecroppers and farm laborers, with minimal investment in these sectors.
Amid this challenging economic situation, addressing escalating rural poverty requires prioritizing interest-free loans like the Community Investment Fund (CIF), which has proven effective in supporting rural women with income-generating activities. According to the PSC survey (2016) by SRSO, CIF beneficiary Ms. Irshad Khatoon had a poverty score of 15, and Ms. Gulzar scored 16, both falling within the chronically poor category.
Ms. Irshad Khatoon, a beneficiary of the Community Investment Fund (CIF), received five disbursements ranging from PKR 10,000 to PKR 50,000 between 2018 and 2024. As a member of the Sujag Community Organization (CO) in Bukhsho Sario village, she accessed these funds through the Saria Village Organization (VO) under an annual lump-sum instalment. She invested in livestock, specifically goats, which she reared for six to eight months and sold during Eid-ul-Azha to maximize profits. The goats also produced offspring, which she sold at a substantial profit during the Eid festival. After repaying the loans to her VO, she channelled the profits into establishing a successful pakora (fritters) and ice stall for her disabled son, Irshad Ali Sario, in the village. Irshad Khatoon has sustained this cycle of securing CIF loans, purchasing and raising goats, selling them during Eid-ul-Azha, repaying loans, and reinvesting the profits to support her son’s thriving business.
Mr. Irshad Ali Sario, a 44-year-old with nyctalopia and partial paralysis affecting one arm and eye, operates a pakora (fritters) and ice stall in his village. He buys ice daily for PKR 3,000, sells it for PKR 4,000, earning PKR 1,000 profit (PKR 30,000 monthly) from April to mid-October 2025. In addition, he sells pakora (fritters) from 1:00 PM to 8:00 PM, spending PKR 3,000 daily and earning PKR 4,000, yielding another PKR 1,000 daily profit (PKR 30,000 monthly). His combined monthly income of PKR 60,000 supports his livelihood despite his disabilities.
As per the words of Irshad Ali Sario, “I felt hopeless as I was a disabled person until my mother used a CIF interest-free loan providing profits to start my pakora and ice stall. This venture now generates an epic income, enabling me to support my household successfully. I credit the CIF loan for transforming my life.”
Ms. Gulzar, wife of Punhal Khan Sario, a 47-year-old disabled man, joined CO Sujag in Bukhsho Sario village and received two interest-free CIF loans (PKR 40,000 and PKR 50,000). Following her mother-in-law’s strategy, she invested in goats, sold them during Eid-ul-Azha, and used the profits to buy a second-hand loader and establish a stall selling kulfi (frozen dairy dessert), juice, and cold drinks in the village. Punhal earns PKR 1,000 daily from both juice/cold drinks and kulfi, totalling PKR 60,000 monthly, while they currently own two goats from the CIF loan.
Mr. Punhal Khan Sario shared, “After losing my leg in a firing incident, I was hapless and faced severe poverty as I was unable to earn money. As days went by, my wife received a CIF interest-free loan, which helped me start a kulfi and juice stall. With this support, I now feed my family and believe one should never be upset and lose faith in life.” Thus, it proves that CIF is a viable strategy to combat rural poverty.
Read: Rural Women of Sindh: Challenges and Pathways
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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
