For PKSF, this has been another year of making steady progress towards fulfilling its mission. With the expansion and increased diversification of its lending programmes, it has continued to successfully meet new challenges and address emerging strategic issues.

The significant increase in loan disbursements took place in spite of the fact that for the first time, no loan was disbursed to the Partner Organisations in the BIPOOL category - the big national-level NGOs. This reflects the fact that the total lending to the numerous NGOs in the OOSA category exceeded the target by a large margin. This is a landmark achievement in fulfilling one of the original missions of PKSF, namely, to nurture and strengthen the local-level microfinance institutions scattered all over the country.

During the year under review, PKSF also introduced a self-regulatory measure to set an upper limit to the interest rates charged by the Partner Organisations in respect of their microcredit programmes funded by PKSF. This was intended to ensure that the efficiency gains made over the years in microcredit operations could benefit the poor through a reasonable structure of interest rates. The Partner Organisations deserve our whole-hearted appreciation in helping to put this measure into practice.

This has also been a year when PKSF has helped and encouraged its Partner Organisations to consolidate or initiate institutional innovations, particularly in promoting scaled-up micro-enterprises as well as in reaching the poorest of the poor. Innovative programmes were designed especially to help the monga-affected people in certain poverty pockets in the north-western part of the country.

I extend my sincere thanks to all concerned who have contributed to the achievements of PKSF

January 2006

Wahiduddin Mahmud
Chairman