Abstract
This study explores the effectiveness of microfinance institutions in Pakistan to knock the door of target population. For this purpose, Punjab Rural Support Programme (PRSP), Punjab (Pakistan) has been employed as representative institution of microfinance. Data was collected through a comprehensive questionnaire from 476 borrowers of PRSP with the help of pure random sampling technique. A disaggregated ratio analysis was applied to the collected dataset to find the socio-economic status of respondents. Thereafter, under the multidimensional non-welfarist approach of poverty, it has been tried to classify the respondents’ status and to find out the questioned effectiveness of the institution. This study puts its evidence in favor of proponents of theory mentioning microfinance institutions to reach the deprived segments of the society.