IntroductionPoverty is the main problem everywhere. Over the past three decades, several developing and developed countries have taken various measures to alleviate poverty. In the world %??(how much%) people live below the poverty line, their daily or monthly income is less than $xxx(how much). One of the main steps is the creation of microfinance institutions that provide microcredit to the poor without any collateral. The performance of these institutions is very interesting, although some commercial banks have initiated microfinancing on a commercial basis. It is actually not possible for poor or low-income people to get credit from the formal banking sector. Because they have no collateral and no security which is the basic requirement of the formal banking system. This is why in most countries the poor do not have access to financial services due to which they cannot increase their income and assets and cannot break out of the cycle of poverty. There are some informal financial alternatives such as moneylenders, family loans and traders are usually limited to a limited, mostly inflexible amount. It is necessary to help the poor and provide them with sustainable economic opportunities globally. MFIs provide credit facilities to the poor to start new businesses, improve micro or small businesses, home renovation loans, employee loans, livestock loans, agricultural loans to individuals and groups without any collateral. The amount of this loan in Pakistan ranges from Rs 1,500/- to Rs 150,000/- equivalent to $18 to $1800. The terms and conditions are usually so common and easily available to everyone. For example, possession of NIC (national identity card), two years of individuals staying at their NIC address, age between 18 and 58, rough......half of card......revenue . (Sagheer, 2005). Abnon Haq assessed the financial performance of Pakistani microfinance organizations in 2008 using statistics from 5 major banks, 6 microfinance institutions, and 4 NGOs and RSPs. It concluded that the growth rate of microfinance banks is good and that NGOs and RSPs are satisfactory. However, Pakistani MFIs should focus on both individual and group lending, also these organizations should also focus on savings deposits which could be a source of funds for these organizations. (Haq, 2008) The reasons for the unexplored characteristics of microfinance, especially in Pakistan, are the limited number of academic studies, lack of comprehensive data sets and governance techniques (Hartarska, 2005). To explore this field we need to investigate this field with maximum data, more variables and different governing aspects and characteristics.