The financial year 2003-04 has been another successful year for PKSF in terms of expanding its lending programmes and providing support towards institutional strengthening of its Partner Organizations. Along with consolidating its mainstream credit programme, PKSF also continued to implement several special projects designed to meet the varied credit needs of the poor. As an apex funding institution for microcredit, PKSF continued to show sound and healthy performance indicators, as will be evident from the information provided in this Annual Report.
Microcredit in Bangladesh has now come of age. It has an extensive outreach and an established loan repayment culture and its beneficial effects on the poor are well documented. The issues that are emerging are really to do with second or even third generation problems and challenges for microcredit: outreaching the poorest of the poor, upscaling micro-enterprises, setting up a regulatory framework, attaining full financial sustainability, establishing synergies with other social development interventions, mainstreaming microcredit into the financial markets, and so on. By adopting a learning-by-doing approach and by using accumulated knowledge, PKSF is in a position to actively contribute to the resolution of these issues.
We take pride in noting that PKSF has come to be recognized globally as a model of apex funding institution for microcredit and other countries are trying to follow our model. In hosting the Asia Pacific Region Microcredit Summit Meeting of Councils in February 2004, PKSF reiterated its commitment to promoting microcredit movement worldwide. The Meeting provided an excellent opportunity for policy-makers, academics and microcredit practitioners to share their ideas and experience.
I extend my sincere thanks to all concerned who have contributed to the achievements of PKSF.

February 2005