PKSF seeks Tk 10 billion from government

Palli Karma-Sahayak Foundation (PKSF), a state-owned 'not-for-profit organisation,' has sought two allocations amounting to Tk 10 billion in the budgets for the current and next fiscal years (FYs), officials said.

Managing Director of PKSF Md Abdul Karim has sent a letter to the Bank and Financial Institutions Division of the Ministry of Finance (MoF) seeking the funds.

According to the letter, PKSF has sought an allocation of Tk 5.0 billion in the revised budget of the ongoing FY and Tk 5.0 billion in the next FY budget.

Activities of the government entity are done through government and donor funds. Expansion of its credit disbursement, especially in the Micro Enterprise Credit Programme (Advanced) and Micro Credit for Agri Sector Programme (good output), is gradually shrinking due to payment of the government debt and interest that has caused reduction of its capital, sources said.

Presently, demand of the Micro Enterprise Credit Programme (Advanced) has increased manifold among its beneficiaries; so financial assistance from the government is very urgent to increase agricultural production through the expansion of micro credit programmes. This is why the foundation has sought Tk 10 billion in the budgets of the two FYs.

The government provided Tk 3.75 billion as donation to the Micro Enterprise Credit Programme (Advanced) from the FYs 2004-05 to 2008-09. The government financing to the programme has, however, remained suspended since FY 2008-09.

A total of Tk 182 billion (18,276 crore) was disbursed until July, 2014 under the Micro Enterprise Credit Programme (Advanced). Presently, the beneficiaries of the programme stand at 0.589 million, according to the official data.   

As of July last year, PKSF disbursed Tk 14.04 billion among the recipients under the Micro Finance for Agri Sector Project. There are some 0.43 million beneficiaries under the project, the data mentioned.  

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