1.1 BackgroundWomen in Pakistan face several challenges due to their economic, social and cultural status. They constitute 52% of the total population of Pakistan but unfortunately, they occupy a subordinate position inherited from traditional and state institutions. The Gender Development Index (GDI) helps us understand gender inequalities and their link to vulnerability, particularly inequalities between men and women. When this measure is taken into account, Pakistan ranks 152 out of 155 countries with greater gender disparity. A similar gender index is the Gender Empowerment Measure (GEM), which takes into account gender inequalities in the economic and political spheres. According to the United Nations Development Program (2009), Pakistan ranks 99th out of 109 countries for which data is available. These facts show that Pakistani women grow up with limited opportunities to access education and basic necessities, which further limits their ability to earn money. to earn a living and force them to seek employment in the informal sectors. More than three-quarters of economically active women in urban areas are employed in the informal sector (ADB, 2000). The existence of the informal economy reveals the potential of entrepreneurship and offers the possibility of using it as an agent of change.1.2. SignificanceInflation, high unemployment and growing poverty have put great pressure on the government to develop strategies to empower women and make them an economically active member of society. On the other hand, the government is not able to create a large number of formal sector jobs in the current situation of economic and political instability. In this scenario, it is important to leverage ...... middle of document ...... th microfinance: evidence from Bangladesh » University of Chicago Rehman, MH and Naoroze, K. (2007). Aquaculture: experience of a large-scale technology demonstration project in Bangladesh. Journal of Social Sciences, 3(4),164-171.Sharma. R. P, 2007. “Micro-finance and Women Empowerment” The Journal of Nepalese Business Studies, 4(1)Swain, R. and Wallentin Y. (2007).Dose microfinance Empower women Evidence from self-help groups in India pp. 26 aWeiss, John; Montgomery, Heather and Kurmanalieva, Elvira (2003). “Microfinance and poverty reduction in Asia: what is the evidence”? ADB Institute, Research Paper, Working Paper Series (53). World Bank, Engendering Development: Through Gender Equality in Rights, Resources, and Voice—Summary (Washington, DC: World Bank, 2001); www.worldbank.org/gender/prr/engendersummary.pdf.