Bangladesh Bank (BB) and the Palli Karma-Sahayak Foundation (PKSF) today (19 August) signed a Tk5000 crore agreement to accelerate economic activities at the grassroots level and create sustainable employment through increased financing for micro-enterprises.
The agreement was signed at Bangladesh Bank headquarters in Dhaka in the presence of Bangladesh Bank’s Deputy Governors Md Kabir Ahmed and Md Anis Ur Rahman, and Director Nawshad Mustafa, and PKSF’s Managing Director Md Fazlul Kader, Deputy Managing Director Akond Mohammad Rafiqul Islam, and Senior General Manager AKM Nuruzzaman, according to a press release.
Bangladesh Bank announced the Tk5,000 crore special incentive fund on 23 May for implementing specialised programmes through PKSF aimed at accelerating employment generation in the country. PKSF has completed all preparations to implement a nationwide program using the fund.
The press release says the program seeks to create employment in the microenterprise sector by ensuring increased access to finance for targeted microenterprises, alongside other necessary forms of support. It will be implemented through three core components: financial services, business-cluster-based value chain development, and skills development for entrepreneurs.
To create 200,000 jobs in the microenterprise sector, PKSF will support the development of promising business clusters that have emerged across different parts of the country. To meet growing demand at the grassroots level and ensure the optimal use of the fund, the incentive fund will be operated as a revolving fund. This will ensure a continuous flow of finance and help transform the country’s microenterprise sector into one of the key engines of inclusive economic growth.
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