PKSF launches project to ‘transform rural microenterprise’

In a boost to the Bangladesh's microenterprise sector, Palli Karma-Sahayak Foundation (PKSF), an apex development agency of the country, has floated a new project titled 'Rural Microenterprise Transformation Project (RMTP)'.

The six-year project, jointly financed by PKSF, the International Fund for Agricultural Development (IFAD), the Danish government was launched on Sunday, according to a press release.

Md Ashadul Islam, senior secretary of Financial Institutions Division, Ministry of Finance was chief guest at the RMTP's virtual launching ceremony presided over by PKSF Chairman Dr Qazi Kholiquzzaman Ahmad.

Describing RMTP as a time-befitting project, Md Ashadul Islam said that development of microenterprise is very important for the country's overall economy. "Ensuring adequate financing for marginal producers and micro-entrepreneurs is a big challenge. In line with the government's development strategy, this project will help address this challenge," he said.

Terming PKSF 'an iconic institution' in development operations in Bangladesh, he said the organisation has proven their efficiency in implementing projects like RMTP.

PKSF Chairman Dr Qazi Kholiquzzaman Ahmad said Bangladesh's economy is still largely rural and agri-based, and 80 percent people are working in the informal sector.

To transform this situation, appropriate financing along with technology transfer, training, market expansion, and forwards and backward linkage are required, he added.

In his presentation, PKSF Deputy Managing Director Md Fazlul Kader said that value chain development, financial services, and institutional capacity development support will be provided for the promotion of agricultural products under three major farm sectors -- livestock and poultry, crops and horticulture, and fisheries and aquaculture.

He said the total project fund, which will directly benefit 50,000 micro-entrepreneurs across the country, stands at $200 million, in which IFAD's contribution is $81 million and DANIDA, a co-financier, will provide $8.30 million.

Mohammad Moinuddin Abdullah, managing director of PKSF; Winnie Estrup Petersen, ambassador of the Royal Danish Embassy to Bangladesh, and IFAD's Country Director Omer Zafar also spoke at the event.