Chief Adviser Inaugurates Workshop on
"Programmed Initiatives for
Monga Eradication"

[Dr. Fakhruddin Ahmed, Hon'ble Chief Adviser to the Caretaker Government of Bangladesh, addressing the workshop on 'Programmed Initiatives for Monga Eradication (PRIME)' of PKSF.]

The Hon'ble Chief Adviser Dr. Fakhruddin Ahmed called upon the government and non-governmental organizations to work with synergy to prevent seasonal problem 'Monga' which prevails in greater Rangpur region during September-November lean period for want of employment and food. He made the call while inaugurating a dissemination workshop on "Programmed Initiatives for Monga Eradication (PRIME)" launched by PKSF held on August 12, 2007 at RDRS Auditorium, Rangpur.

The Hon'ble Adviser to the Ministry of LGRD and Co-operatives and Ministry of Labor and Employment to the Government of the People's Republic of Bangladesh, Mr. Md. Anwarul Iqbal attended the ceremony as the Special Guest.

The Acting Managing Director of PKSF Mr. Mosharraf Hossain Khan made a presentation on PRIME. Deputy Managing Director of PKSF Ms. Parveen Mahmud proposed a vote of thanks at the workshop. The government officials of the local administration, Union Council Chairmen, the representatives from the concerned donor agencies and the chief executive officers of 11 Partner Organizations (POs) of PKSF implementing PRIME program attended the workshop.

It may be mentioned here that PRIME, which was formally launched in Lalmonirhat in June 2006, was expanded in April, 2007 based on the experience and learning from 2006, to cover Gaibandha, Kurigram, Nilphamari, and Rangpur Districts. PKSF has selected 11 POs to work in Monga affected 5 districts of greater Rangpur region.

Dr. Quazi Mesbahuddin Ahmed Takes Over as the Managing Director of PKSF

[Dr. Quazi Mesbahuddin Ahmed]

Dr. Quazi Mesbahuddin Ahmed, former Member, General Economics Division of the Bangladesh Planning Commission, has been appointed Managing Director of Palli Karma-Sahayak Foundation (PKSF). PKSF is the country's apex organization for funding microfinance programes of NGOs and other organizations and providing them various institutional development services for poverty alleviation. Prior to his posting as Member, Planning Commission, Dr. Ahmed was Additional Secretary, ERD in 2003. He had been Economic Minister at the Bangladesh Embassy in Washington, DC during 1997-2002. While serving at the Planning Commission, Dr. Ahmed played a pivotal role in preparing Bangladesh's Poverty Reduction Strategy Paper (PRSP). He was also the chief of the National Poverty Focal Point (NPFP) located at the Planning Commission and the Member Secretary to the Governments Independent Committee on Monitoring and Evaluation of PRSP and MDGs.

Starting his career at the Department of Research, erstwhile State Bank of Pakistan in 1969, Dr. Ahmed joined the then East Pakistan Planning Department in 1970 and retired as Member of the Bangladesh Planning Commission in January 2007. Dr. Ahmed possesses B.A (Hons.) and M.A degrees in Economics from the University of Dhaka obtained in 1967 and 1968 respectively. He holds an MS degree in Economics from the James Cook University of North Queensland, Australia. He did a Master's degree and a Ph.D. in Economics from the University of Illinois at Urbana-Champaign, USA. Dr. Ahmed was a visiting fellow at the University of Western Australia during 1994. He has been working as an independent expert of the SAARC Secretariat since June, 2007.

Infrastructure Development Work:

Under the PRIME, 'Cash for work' program, designed for the severely monga-affected people for ensuring their food security by involving them in local infrastructure development activities, was implemented during 2006 and 2007. Under 'cash for work' program 5.2 million man-days work was created in the last two lean seasons of 2006 and 2007. Employment was managed for 1,26,311 people with an investment of Tk. 393 million.

Emergency loan:

To rehabilitate the monga-affected families, Tk 14.0 million was disbursed to 10,025 families upto December 2007. The beneficiaries used this loan for meeting immediate consumption need in the monga period to enhance their food security. The POs of PKSF had undertaken the relief operations program using the surplus earned from the microcredit operation.

Provision of Microcredit Services:

A total of Tk. 186 million has been disbursed among 37,730 beneficiaries to provide year round access to microcredit service under the expansion plan of PRIME.

PKSF Programs for Cyclone Affected Microcredit Borrowers

PKSF took a number of emergency initiatives through its 32 POs working in the cyclone 'SIDR' affected areas in the southern part of the country. PKSF advised its POs to undertake immediate relief operations, such as providing dry food, medicine, water purifying tablets etc. using the surplus earned from the microcredit operations. POs have been asked to ensure that there is no coercion for repayment/recovery of loan installment from the affected microcredit borrowers and allow the borrower to withdraw their savings as and when demanded by them. POs were asked to apply for rescheduling of their dues to PKSF in case of any default due to temporary suspension of recovery in the field. The POs of PKSF responded immediately to PKSF's advice and undertook massive relief operation program in the SIDR affected areas.

[A rural house destroyed by cyclone 'SIDR'.]

Moreover, according to the instruction of PKSF, POs took preparation to carry out a massive rehabilitation program including provision of seasonal loan.

PKSF has created a special fund amounting to Taka 500 million to provide long-term interest free loan to the affected microcredit borrowers to re-construct their houses.

PKSF has already disbursed Taka 341.0 million as interest free loan to the affected borrowers through its 29 POs under its newly undertaken program titled 'Special Assistance for Housing of SIDR affected borrowers (SAHOS)'.

Besides this PKSF has undertaken an initiative to rehabilitate the marginal farmers, shrimp cultivators, fishermen, small entrepreneurs and to create self-employment opportunity for the cyclone affected microcredit borrowers through a special program titled 'Rehabilitation of SIDR affected Coastal Fishery, Small Business & Livestock Enterprises (RESCUE)' using a government fund of Taka 1300 million.

PKSF Programs for Flood 2007 Victims

PKSF and its POs implemented different programs for two consecutive floods of 2007 victims e.g. disaster management program, livelihood restoration program and distribution of relief materials, medicine and pure drinking water among the flood-affected people. The POs of PKSF had undertaken the relief operations program using the surplus earned from the microcredit operations. During July to December, 2007 PKSF has disbursed Tk. 11.00 million interest free loan from its Disaster Management Fund for the restoration of livelihood, construction of houses and help build assets of the poor people.

PKSF disbursed Disaster Management Fund side by side other loans to its POs to face natural disasters. Besides this, PKSF has disbursed Tk. 694.8 million through its 119 POs under livelihood restoration program to ensure post flood income generation activities at a nominal service charge of Taka 0.5%.

Moreover, during that time, PKSF also had given special instruction to its POs to help the poor flood victims, which include distribution of relief materials, suspension of repayment of loan installments and restoration of livelihood as post flood rehabilitation program. Moreover, PKSF had given special instruction to its POs to strengthen seasonal loan program during post flood period to give the microcredit beneficiaries access to credit at the time of their requirement.

PKSF, in association with ICDDR,B and Public Health Directorate, supplied oral saline and tablets to the flood affected people through its POs. Moreover, different leaflets, posters, booklets had been distributed among the flood-hit people to raise awareness regarding health, hygiene and water born diseases that spread with the recession of flood water.

[A view of Flood 2007.]

All the officers and employees of PKSF donated one-day salary to the relief and rehabilitation fund of the Chief Adviser to Caretaker Government of Bangladesh.

PKSF Starts LIFT for Innovations in Microfinance

Realizing the fact that poor friendly creative and innovative products and initiatives can bring significant changes in the microfinance services, PKSF has launched a special fund titled 'Learning and Innovation Fund to Test New Ideas (LIFT)'. LIFT would trigger innovations in the microfinance sector to make the microcredit program more dynamic, productive and diversified. PKSF realized that innovative initiatives by its POs, non-POs and individuals are constrained by lack of fund. All these inspired PKSF to create LIFT fund using its own resource that amounts to Taka 100 million. Later DFID, UK has come forward to support this initiative under the "Promoting Financial Services for Poverty Reduction (PROSPER)" project.

[Acting Managing Director of PKSF Mr. Mosharraf Hossain Khan
is seen handing over the cheque to the Executive Director of TMSS
Professor Hosne Ara Begum.]

PKSF has started funding under its LIFT program by disbursing Taka 2.5 million against the sanction of Taka 5.0 million for Thengamara Mohila Sabuj Sangha (TMSS). TMSS will use the fund for preparing incubator using local material for hatching eggs and will sell the product to the microcredit beneficiaries at a subsidized rate. Introduction of such a technology is expected to add a new dimension to microcredit sector. Up to December, 2007 PKSF has disbursed Tk. 9.4 million to 4 organizations for 4 different innovative enterprises.

[The incubator used for hatching eggs.]

7 OOSA POs Made BIPOOL PO

PKSF carries out its operations through its two categories of POs. These are OOSA (Organizations Operating in Small Areas) POs and BIPOOL (Big Partner Organizations Operating in Large Areas) POs. Recently 7 OOSA POs have been included as the BIPOOL PO as they have graduated and achieved the criteria to be selected for the category. Starting with a limited financial and institutional capacity, the POs have been progressing towards achieving the goal with the financial and institutional development support from PKSF. As a result, the number of BIPOOL PO has reached -10, as 7 OOSA POs have been included with the existing 3 BIPOOL POs - BRAC, ASA and Proshika Manobik Unnayan Kendra. The 7 new BIPOOL POs are RDRS, Bangladesh; Padakhep Manabik Unnayan Kendra; Thengamara Mohila Sabuj Sangha (TMSS); United Development Initiative for Program Actions (UDDIPAN); Society for Social Services (SSS); Jagoroni Chakra Foundation and Rural Reconstruction Foundation.

The main criteria for selection of a BIPOOL Category PO include: i) The organization is operating a successful microcredit program for a minimum of 5 years; ii) It has at least 100,000 borrowers with a strong potential for expansion; iii) It has at least Taka 100 million of equity (including foreign grants, surplus etc.) of its own on the program; iv) The debt-equity ratio does not exceed 3.5:1; v) It maintains a strong and transparent accounting, internal audit and management information system; vi) It has its accounts audited by a reputed external auditor on an annual basis; vii) The minimum loan recovery rate is 95%; and viii) A loan collection rate of 92-100% on current dues on a running 12 month basis.

Acting MD Participates at Second World Congress

Acting Managing Director of PKSF, Mr. Mosharraf Hossain Khan participated at the 2nd World Congress on Agricultural and Rural Finance, held on October 31- November 3, 2007 at Bankok, Thailand at the invitation of Bank for Agriculture and Agricultural Cooperatives (BAAC) and Asia-Pacific Rural and Agricultural Credit Association (APRACA). He also participated at the FinPower Regional Forum on Rural Financial Innovations and Asia-Pacific Dialogue (A-A Dialogue) held on October 30, 2007. The Regional Forum was intended to disseminate the current innovations and best practices in the Asia-Pacific Region. The 2nd World Congress was organized to look deeper into rural and agricultural economies and their potent contribution to sustainable and equitable development. The 2nd World Congress focused its attention on emerging global developments, namely: Food Sufficiency, Grass Roots Empowerment, Climate and Environmental Issues, Technological Advances and Public Private Sector Partnership and how these affect and impinge on the development of the grass roots economies and the ability of the rural financial institutions to provide appropriate and adequate financial and finance related services. The events also included an interfacing international exhibition and technical fair on "Agricultural and Rural Finance".

Supervision and Monitoring of Credit Programs of PKSF

PKSF officers have intensified their supervision and monitoring activities as its microcredit program has been extended and diversified. PKSF officers visit the POs regularly every three months and submit the tour report to the management and share their main observations with others. They follow well-designed guidelines during their visit.

During on-site monitoring, PKSF officers provide POs with hands-on technical advice to improve program quality. Follow-up actions are taken both at PKSF and PO level on findings during the field visits.

The members of the senior management team of PKSF have also made a number of visits for the purpose of on-site monitoring during July to September 2007.

Mrs. Parveen Mahmud, Deputy Managing Director, visited a number of partner organizations. She visited different income generating activities of the microcredit borrowers and talked to them. During September 09-11, 2007, she visited the activities of UCEP-Bangladesh at Kadamtali and Shaplabagh in Sylhet. UCEP-Bangladesh has been included recently as a PO of PKSF. During her visit she inspected a feeder school that enrolled about 28,174 students, most of them are the children of microcredit beneficiaries of UCEP-Bangladesh. The students have technical education along with the general school education in a concise schooling time of 4 years to have an education of up to class eight. Moreover, the students have six months long Pre-tech education after passing general school education of class eight according to the curriculum of the education board. This preliminary technical knowledge helps them to have get access to different technical education and overseas employment.

Ms. Mahmud made a number of suggestions during her visit relating to the opportunity of employment/ self employment for the poor at home and abroad that might be created using the technical knowledge.

New Partner Organizations (POs) of PKSF

At present, the number of POs of PKSF is 225. These POs are working throughout Bangladesh. PKSF has a policy to include areas sparsely populated or with exceptional and difficult situation which are still out of microcredit program. So PKSF encourages the inclusion of the MFIs working in the areas that had hitherto been out of the microcredit operation and the areas with less microcredit operation as its POs. Inclusion of NGOs/MFIs as the POs is one of the regular activities of PKSF.

During the period from July to September 2007, PKSF has included two Microfinance Institutions (MFIs) as its POs that work in 8 Upazilas of Dhaka, Joypurhat and Cox's Bazar District and 10 Pouroshovas under Dhaka City Corporation and 51 Upazilas of 13 Districts of the Middle and Northern Region of the country. The profile of the organizations are presented below:

BASTOB-Initiative for People's Self Development, a voluntary social services and development organization of Dhaka District has been accepted as a PO at the 146th Governing Body Meeting of PKSF. The organization was registered with the Joint Stock Company. The working area of the organization covers 149 villages of 23 unions under 8 Upazilas of Dhaka, Joypurhat and Cox's Bazar District. The organization had a loan outstanding of Tk. 38.6 million at the field level and had a total of 9,164 members in 354 groups under its microcredit program at the time of its inclusion as a PO of PKSF.

The organization has disbursed Tk. 215.3 million as loan among the members and collected savings of Tk. 20.4 million from the members. The loan recovery rate of the organization was 99.0 percent. The Secretary of the Executive Committee Mr. Ruhi Das is the Executive Director and CEO of the organization.

Manabik Sahajya Sangstha, a voluntary social services and development organization of Dhaka District has been accepted as a PO at the 146th Governing Body Meeting of PKSF. The organization was registered with the Joint Stock Company in April 1979. The working area of the organization covers 565 villages of 86 unions under 51 Upazilas of 13 Districts of the Middle and Northern Region of the country and 163 Wards of 10 Pouroshovas under Dhaka City Corporation. The organization had a loan outstanding of Tk. 372.0 million at the field level and had a total of 0.102 million members in 3145 groups under its microcredit program at the time of its inclusion as a PO of PKSF.

The organization has disbursed Tk. 2686.4 million as loan among the members and collected savings of Tk. 267.4 million. The loan recovery rate of the organization was 99.57 percent. The Member Secretary of the Executive Committee Mr. A. N. Md Emam Hasnat is the Executive Director and CEO of the organization.

Training/Seminar/Study Visit

The Training Wing conducts training courses on different aspects of microcredit program management for PKSF and for its POs and for national organizations at home and organization of different countries. During the time span of July to September 2007, the Training Wing of PKSF organized the following training courses, study visits and programs:

Outsourced Training for POs Staff
PKSF organized training courses on "Group Dynamics and Microcredit Management" for 459 Field Workers of 35 POs at the training centers of DESHA, BDS, GUP, SSS, ESDO, TMSS, WAVE, RRF, YPSA, Jagoroni Chakra Foundation, Padakhep Manabik Unnayan Kendra and Dabi Moulik Unnayan Shangstha. The training was conducted through 16 courses during the month of July to September 2007.

Training of Trainers (TOT)

PKSF organized a training of trainer course for the officers of PKSF POs under FSVGD and Ultra Poor Beneficiaries Project of PKSF. The training was held in 14 batches during August 19-23, 2007; September 02-06, 2007 and September 23-27, 2007.

Training on Microcredit, Accounts and Financial Management

PKSF arranged 4 training courses for the mid-level officers of PKSF POs on 'Microcredit Management' held during 8-12, 2007 at PKSF Bhaban. The training courses were participated by 100 mid-level officers of 41 POs of PKSF.

PKSF organized 9 training courses on 'Microcredit and Financial Management' in 9 batches during August 05-09, 2007 and during August 12-16, 2007. The training courses were participated by 217 officers from 31 PKSF POs under FSVGD and Ultra Poor Beneficiaries Project of PKSF.

PKSF organized 2 training courses for the accountants of the branches of its POs on 'Accounts and Financial Management' from 15-18 July 2007 and 17-20 September 2007. 47 accountants of the branch offices of 41 POs of PKSF participated at that training course.

[Dr. M. A. Hakim, General Manager, PKSF is seen addressing the closing session of a training course titled 'Training of Trainer Course under FSVGD and Ultra Poor Beneficiaries Project' at PKSF Bhaban.]

Training on Supervision and Monitoring

PKSF arranged a training course for the mid-level officers of PKSF POs on 'Supervision and Monitoring' in two batches during July 31- August 2, 2007 and during August 27-29, 2007 at PKSF. The training course was participated by 53 mid-level officers of 49 POs of PKSF.

Spot Training

PKSF organized a spot training for the field workers of its PO- Dwip Unnayan Sangstha, held during 17-18 August 2007. The training course was participated by 30 field workers of the PO.

Orientation Course for PKSF Project Staff

PKSF arranged an orientation course for the PLDP and MFMSF Project Staff of PKSF during July 21-26, 2007 at PKSF Bhaban. The training course was participated by 19 Staff of PLDP and MFMSF Project of PKSF.

Workshop on NGO Governance

PKSF organized a workshop on 'NGO Governance' at Bangladesh Enterprise Institute (BEI). The workshop was held on August 2007. The workshop was participated by the representatives of the Executive Committee of the POs. A total of 48 members, mainly chairman and secretary of the Executive Committee of 24 POs attended the workshop.

The workshop is intended to achieve two primary objectives: a) build greater awareness on the importance of NGO Governance issues; and b) provide ideas and tools that participants can utilize towards implementing and facilitating governance principles within their respective institutions.

PKSF Starts Funding in Two Specialized Projects

Rural Electrification Development Project (REDP)
A Memorandum of Understanding (MOU) was signed between Department for International Development (DFID) and the Government of Bangladesh to implement a project titled 'Rural Electrification Development Project (REDP)'. In this backdrop, PKSF signed a MOU with the Ministry of Finance, of the Government of Bangladesh on 28th January 2007. The project will be implemented in two phases- Pilot Phase and Program Phase. The budget of the project is about US$ 14 million. The project beneficiaries will obtain two types of loan - a loan for electricity connection from Rural Electrification Board and the other loan is for any Income Generating Activities (IGAs). PKSF has been working for the implementation of the project through its PO- Padakhep Manabik Unnayan Kendra. PKSF has sanctioned a loan of Taka 52.9 million in the first installment to Padakhep Manabik Unnayan Kendra. The PO will provide a total of Taka 21.2 million to the beneficiaries as loan for electricity connection and Taka 31.7 million as loan for any IGA. PKSF has started disbursement by providing Taka 13.1 million to the PO for the first time.

Rehabilitation of Non-Motorized Transport Pullers And Poor Owners Project RNPPO)

Under the project, PKSF would support the non-motorized transport pullers and poor owners who have been affected by the ban to ply non-motorized transports in some roads of Dhaka city. The project would be undertaken for a period of two years. The World Bank has approved a fund of US Dollar 15.0 million for the project. In this regard, an agreement was signed between IDA and Government of Bangladesh on June 21, 2007. PKSF has sanctioned a loan of Tk. 271 million in favor of its 10 POs to implement the project.

Credit Operations Status of PKSF

Loan Sanction to POs by PKSF

The Governing Body of PKSF held two meetings and sanctioned loans amounting to Tk. 3296.81 million to the POs from July to October, 2007, as presented in the following table:

Loan Disbursement to POs

PKSF disbursed Tk. 2862.05 million under its mainstream microcredit program and Tk. 1141.85 million under its projects from July 2007 to October 2007.

Cumulative loan disbursement from PKSF to the POs was Tk. 46572.22 million, as of October 31, 2007. The recovery rate of loan from the POs to PKSF was 98.01 per cent.

A summary of PKSF's cumulative loan disbursement and loan outstanding to the POs has been presented below:

* · Mainstream Microcredit comprises: Rural Microcredit, Urban Microcredit, Ultra Poor Credit, Micro Enterprise Lending (MEL), Seasonal Loan, Participatory Livestock Development Project (PLDP- I), Disaster Management Loan (DML) and Pre-PKSF Loan.

** PLDP=Participatory Livestock Development Project (PLDP-1I), TEIGP=Training, Employment and Income Generation Program, IFADEP=Integrated Food Assisted Development Project, SRLP=Socio-economic Rehabilitation Loan Program, FSP=Financial Services for the Poorest, PAMFP=Poverty Alleviation Micro Finance Project, MFTS=Micro Finance and Technical Support, MEL (GOB)=Micro Enterprise Lending (GOB), UPP (GOB) =Ultra Poor Program (GOB), MFMSF= Microfinance for Marginal and Small Farmer, LRP= Livelihood Restoration Program, LIFT=Learning and Innovation Fund to Test New Ideas,
ID= Institutional Development, REDP= Rural Electrification Development Project.

Loan Disbursement to Borrowers

As of October 31, 2007, the POs through revolving the amount provided by PKSF have disbursed Tk. 315213.06 million to 8.09 million borrowers of whom 91.82 per cent are women. The cumulative loan recovery rate from the borrowers to the POs was 98.95 per cent.

Microcredit Fair 2008 to be Held in April

A Microcredit Fair, the first of this kind in the country, held on February 4-5, 2006 had drawn attention from cross section of people which was also attended by vast people related to the sector. This response has encouraged PKSF to arrange Microcredit Fair every year.

'Microcredit Fair 2008' is going to be held from 25-29 April 2008 at the Bangladesh-China Friendship Conference Center.

The Partner Organizations (POs) of PKSF and some non-POs are expected to take part at the Fair.

[A view of the 'Microcredit Fair 2007']

Editorial Board

PKSF NEWSLETTER
Palli Karma- Sahayak Foundation (PKSF)
PKSF Bhaban, Plot: E-4/B
Agargaon Administrative Area
Sher-e-Bangla Nagar, Dhaka-1207, Bangladesh
Phone : 880-2-9126240-3, 880-2-9140056-9
Fax : 880-2-9126244
E-mail : pksf@pksf-bd.org
Web : www.pksf-bd.org