IMPACT OF MICROCREDIT AND INCOME DIVERSIFICATION ON SDGS: A WAY FORWARD FOR SOCIETAL WELLBEING.

The study aims to measure the impact of access to microcredit and income diversification on the wellbeing of small farm holders in rural Pakistan, with a special emphasis on their implications on achievement of Sustainable Development Goals (SDGs). It features the construction of multidimensional wellbeing index through Principal Component Analysis (PCA) by deploying data from the Household Integrated Economic Survey (HIES) 2018–19. Ordinary Least Squares (OLS) and Quantile Regression (QR) techniques are used to capture variations across different income levels. The results reveal a statistically strong and positive relationship between microcredit access, engagement in diversified income activities, and improvements in household wellbeing. These effects are more potent and stronger among lower and middle-income quantiles, exhibiting that financial inclusion and income diversification plays a considerate role in uplifting socio-economic wellbeing of small farm holders. The study prescribes structured tailoring and effective interventions to support micro-credit access and income diversification to enhance the wellbeing of small farm holders in rural economy.