Poverty is a risk to harmony, which results in the dismissal of human rights. Microfinance is a tool that is famous across the world as a solution to alleviate poverty. Through this tool, lowincome households can have permanent access to a range of high-quality and affordable financial services that are offered by a range of retail providers. Community-based organizations, commonly known as "CBO", play a vital role in providing microfinance to the needy group of people, which determined the relationship between microfinance and poverty alleviation. This research presents a comparative study between Akhuwat Foundation and Kashf Foundation microfinance models for providing housing finance to low-income groups. A qualitative approach has been applied to determine the relationship between microfinance and poverty alleviation. In-depth interviews are conducted with working staff and borrowers of Akhuwat Foundation and Kashf Foundation (microfinance organizations). The research concludes that both organizations strive to alleviate poverty and to enhance the living standard of low-income people through mutual support in the system. The study also suggests that these organizations should need to emphasize more on the diversified needs of the poor people and must aim to serve the most extremely poor strata of the population.

Digital financial inclusion enables the integration of millions of underprivileged individuals into the financial system, making poverty alleviation increasingly achievable. In a developing country like Pakistan, which has a large unbanked population, this presents a significant opportunity for economic empowerment through mobile banking, digital wallets, and fintech innovations. These tools enhance financial participation by improving access to savings, credit, and financial literacy. This research highlights how digital financial inclusion can significantly contribute to poverty alleviation. However, key challenges remain, including limited digital infrastructure, gender disparities, cybersecurity risks, and low trust in digital systems. By examining both policy frameworks and grassroots initiatives, this study offers actionable insights into how these barriers can be addressed. It emphasizes that digital finance, when effectively implemented, can promote sustainable development and help bridge economic disparities in Pakistan’s rapidly evolving digital economy.