Abstract
The study aimed to identify the determinants and to measure the efficiency of different MFIs providing monetary assistance in Pakistan. In addition to this, the study intended to distinctively measure the social efficiency and financial efficiency of MFIs programs. The study applied Data Envelopment Analysis (DEA), which is recognized as a robust and modern technique as compared others. More importantly, DEA deals with double bottom line objectives of financial institutions by simultaneously measuring social efficiency and financial efficiency. Furthermore, the study regressed explanatory variables to determine the double bottom line objectives of financial institutions. Results indicate that none of the MFIs were efficient by utilizing single input. However, it is found that the efficiency of MFIs increases as the inputs are increased. The study yielded that age and size of the institution are substantial determinants of efficiency of MFIs. The MFIs in Pakistan strongly lack efficiency which needs to be improved in throughout the organizations. The MFIs should focus on enhancement of human resource capabilities to achieve optimal level of output through latest and advanced techniques. The study provides guidelines for policy makers to reward and allocate the funds (resources) for MFIs based on social efficiency and/or financial efficiency.