The Palli Karma-Sahayak Foundation (PKSF) has disbursed Tk2,500 crore to 101 partner organisations under a Bangladesh Bank-backed financing programme, enabling around 50,000 cottage and microentrepreneurs to receive loans worth Tk1,416 crore, 87% of them women.
The financing is being provided under the Special Fund for Creating Entrepreneurs in the Cottage and Micro Sectors (SOPAN), which aims to expand small businesses, promote new entrepreneurship and generate employment, particularly in rural and marginalised communities, according to a release.
Bangladesh Bank has allocated Tk5,000 crore in special incentives for the programme. PKSF has so far received Tk3,750 crore in three instalments, while the remaining Tk1,250 crore is expected by December, according to the foundation.
The entire fund is scheduled to be disbursed among entrepreneurs at the grassroots level by January 2027.
PKSF received the first instalment of Tk1,250 crore from Bangladesh Bank on September 7 and has channelled the financing through its 101 partner organisations operating across all 64 districts.
Under SOPAN, entrepreneurs are receiving financing in four broad sectors: technology-driven agriculture and agro-processing, manufacturing, services and value-chain development.
The loans support both new business ventures and the expansion of existing microenterprises, covering activities ranging from production and processing to marketing.
The programme places particular emphasis on creating business opportunities for women and young entrepreneurs, strengthening rural economic activities and promoting agricultural and non-agricultural enterprises.
It also aims to develop backward and forward linkages in microenterprise value chains, helping small businesses expand their economic activities and create additional employment.
To ensure proper utilisation of funds and maintain the quality of lending, PKSF has introduced a digital monitoring system to track loan disbursement and employment generation at the individual borrower level.
The system collects and stores information daily, enabling the foundation to monitor programme implementation and assess progress across its partner organisations.