Chief Adviser to Caretaker Government Visits PKSF

[Dr. Fakhruddin Ahmed, Hon'ble Chief Adviser to the Caretaker Government of
Bangladesh at the meeting with PKSF official]

Dr. Fakhruddin Ahmed, Hon'ble Chief Adviser to the Caretaker Government of Bangladesh, visited PKSF on April 27, 2007 and was welcomed by the senior officials of PKSF. Dr. Ahmed had a meeting with all the supervising officers of PKSF during his visit. He exchanged views on different issues and wanted to know about the progress of several programs and projects of PKSF . The supervising officers of PKSF informed him of their status. After listening to the progress report, Dr. Ahmed expressed his satisfaction as some of the programs and projects were specially initiated during his tenure as the Managing Director of PKSF. While addressing the meeting, the Hon'ble Chief Adviser Dr. Fakhruddin Ahmed called upon the high officials of PKSF to diversify and innovate new products to address the challenges of existing microfinance programs. Acting Managing Director Mr. Mosharraf Hossain Khan, Deputy Managing Director Ms. Parveen Mahmud and General Manager Dr. M. A. Hakim of PKSF also addressed the meeting among others.

Expansion of PRIME Program of PKSF in the Northern Part of the Country

Monga is a seasonal crisis occurring during September to November in the northern part of the country especially in greater Rangpur region (Kurigram, Gaibandha, Lalmonirhat, Nilphamari, and Rangpur) with varying degrees of intensity. Various organizations have come up with isolated programs during the lean season but without regard for an exit strategy or without addressing sustainability concern, and they bundle out when the lean season is over. The Monga hits the following year and the cycle of 'crisis management' continues. With a view to eradicating Monga, PKSF has been implementing a program titled "Programmed Initiatives for Monga Eradication (PRIME)". The program which was formally launched in Lalmonirhat in June 2006 has been expanded in April, 2007 based on the experience and learning from 2006, to cover Gaibandha, Kurigram, Nilphamari, and Rangpur Districts. PKSF has selected 11 Partner Organizations (POs) to work in Monga affected 5 districts of greater Rangpur region.

Survey:
Before starting the implementation of PRIME, a survey was conducted in all villages under Lalmonirhat District. According to the survey, there are 2,25,000 households in Lalmonirhat District (excluding Lalmonirhat Pourasova but including slum areas ) and among them, 1,25,000 households are found affected by the Monga. However based on the degree of intensity, PKSF selected 30,000 families for temporary employment generation through infrastructure development work to cope with Monga. Moreover, 18,000 families were also selected for emergency loan to reduce their vulnerability during Monga.

Component wise Progress (Up to June 2007)

Infrastructure Development Work:
The PRIME implementing POs started infrastructure development work from October 2006 and continued till 30 November 2006. A total of 30,995 beneficiaries were engaged in a day under infrastructure development work such as raising homestead, schools, madrasa, mosques, village markets, construction of flood shelters, repairing roads and dams; cleaning ponds, canals and lakes. PKSF spent Tk 5.5 crore for this purpose.

Emergency loan:

To rehabilitate monga-affected families, Tk 7 Lac were disbursed to 508 families. Most of the beneficiaries used this loan for meeting immediate consumption need in the monga period to enhance the food security level.

Suitable Microcredit Services: To provide year round access to suitable microcredit services, 37.6 thousand beneficiaries have been organized. POs have disbursed Tk 12.33 crore to 24,372 beneficiaries.

Support services for the Monga Affected Families:

Establishment of Poultry Chain: Poultry is an important employment generation program for the poor and ultra poor. So PRIME gives emphasis on the establishment of the poultry village. Supply of chicks is one of the key issues to establish poultry village. To accelerate the supply of chicks, POs have established 6-model breeders and six hatcheries. There are 530 Faomi hens and 70 RIR cocks in each model breeder to get fertile eggs. At present, 50000 pullets are being produced in a month.

Establishment of chick rearing unit: 116 monga-affected families have established chick-rearing unit. There are more than 200 chicks in each unit. The average size of loan for chick rearing unit is Tk 11,000/-. Participatory Livestock Development Project (PLDP)-2, a project of PKSF provides technical support to these families.

Vegetable and Papaya Garden: Up to June 2007, a total of 1,920 monga-affected families have established vegetable garden around their houses. PKSF has distributed 69613 saplings of papaya among the beneficiaries of PRIME program.

Remittance service provided: Till May 2007, 443 beneficiaries have transferred money equivalent to Tk 8.9 lac through different POs. No fee was taken for this service.

[A beneficiary under PRIME program of PKSF is taking care of her poultry.]

Targets under Expansion Plan of PRIME

Infrastructure Development Work:
A total of 96 thousand heads of the families will be employed under infrastructure development work such as raising homestead, schools, madrasa, mosques, village markets, construction of flood shelters, repairing roads and dams; cleaning ponds, canals and lakes etc.

Emergency loan:
To rehabilitate monga-affected families, Tk 12 crore will be disbursed to 43,000 families. The beneficiaries will use this loan for meeting immediate consumption need in the monga period to enhance the food security level.

Suitable Microcredit Services: A total of TK. 76.88 crore will be disbursed among 1.65 lac beneficiaries to provide year round access to suitable microcredit service under the expansion plan of PRIME.

PKSF Signs MoU

Recently PKSF has signed Memoranda of Understanding (MoU) with three national and international organizations. These are as follows:

MoU with BCSIR

A Memorandum of Understanding (MoU) was signed between PKSF and BCSIR on July 25, 2007 at Science Laboratory, Dhaka to cooperate with each other in the field of poverty alleviation and economic development of the country by utilizing the products and technology innovated by BCSIR. This arrangement is a significant step forward towards enterpreneurship development by the country's apex funding organization - PKSF.

Dr. M.A. Hakim, General Manager (Admin), PKSF and Professor Dr. Chouwdhury Mahmud Hasan, Chairman, BCSIR signed the agreement on behalf of their respective organizations. Mr. Mosharraf Hossain Khan, Acting Managing Director of PKSF and Professor Dr. Chowdhury Mahmud Hassan, Chairman of BCSIR discussed different issues of the cooperation that would be extended to achieve the objectives of the MoU at the meeting organized on the occasion.

According to the MoU, PKSF will be able to disseminate technologies and products of Bangladesh Council of Scientific & Industrial Research (BCSIR) to the beneficiaries/ entrepreneurs of its POs which will help introduce more poor-friendly multi-dimensional innovative income generating activities. BCSIR will also provide required training to the entrepreneurs in this regard.

[Dr. M.A. Hakim, General Manager, PKSF (first from the right) and Professor Dr. Chouwdhury Mahmud Hasan, Chairman, BCSIR (second from right) are seen shaking hands after signing the agreement]

The MoU signing ceremony was attended among others by Ms. Parveen Mahmud, Deputy Managing Director and Mr. Fazlul Kader, Deputy General Manager of PKSF. From BCSIR, Dr. Akram Hossain, Member, Science and Technology; Ms. Fahima Rokhsana, Director, Institute of Glass and Ceramic Research & Testing and Engineering; M. Abu Raihan, Director, Pilot Plant & Process Development Centre were present among others on the occasion.

MoU with BARI

PKSF was signed a Memorandum of Understanding (MoU) with Bangladesh Agricultural Research Institute (BARI) on May 06, 2007 at PKSF Bhaban, to cooperate with each other on food security by increasing agricultural productivity, improving nutritional status and alleviating poverty.

On behalf of PKSF, Dr. M. A. Hakim, General Manager (Admin) and Mr. M. Harun -Ur- Rashid, Director General (Current Charge), on behalf of BARI, signed the MoU.

Mr. Mosharraf Hossain Khan, Acting Managing Director of PKSF and Mr. M. Harun -Ur- Rashid, Director General (Current Charge) of BARI discussed about different areas of the cooperation that would be extended to achieve the goal of the MoU. Mr. Golam Towhid, Deputy General Manager of PKSF, Dr. Md. Abu Sofian, Director- Research, BARI and Mr. Nasir Uddin, Director-Service and Supply, BARI also attended the ceremony among others.

Dr. M. A. Hakim, General Manager (second from left) and Mr. M. Harun-Ur-Rashid, Director General (third from right), are seen signing the MoU.

MoU with Concern Worldwide

PKSF has signed a Memorandum of Understanding (MoU) with the Concern Worldwide on July 11, 2007 at PKSF Bhaban, to set out how PKSF and the Concern can coordinate and assist to improve financial and livelihood security services for the poor.

On behalf of PKSF, Dr. M. A. Hakim, General Manager (Admin) and Mr. Kieron Crawley,Country Director, on behalf of Concern Worldwide, signed the MoU. Mr. Mosharraf Hossain Khan, Acting Managing Director of PKSF and Mr. Kieron Crawley, Country Director of Concern Worldwide, discussed different issues of cooperation to achieve the goal of the MoU. Dr. Jashim Uddin, Deputy General Manager of PKSF and Mr. Achyut Hari Aryal, Technical Advisor-Microfinance, Concern Worldwide also attended the ceremony among others.

PKSF Initiative for Rehabilitation of Evicted Slum Dwellers

[Dr. Jashim Uddin, Deputy General Manager of PKSF, presenting the paper on the policy of the rehabilitation program]

The recent eviction program of the dwellers of the slum/illegal settlements throughout the country affected many of the poor members of PKSF Partner Organizations (POs). Considering this, PKSF has taken the initiative to rehabilitate the affected poor beneficiaries through providing a permanent settlement for them. In this connection, PKSF has formulated a policy on the rehabilitation of affected members/ borrowers under its credit program for the ultra poor and organized a workshop to finalize the policy. The General Manager of PKSF, Dr. M. A. Hakim welcomed all the participants at the workshop. In his opening speech Dr. Hakim mentioned that more than 11 percent of the population of Bangladesh are homeless and the rehabilitation program for affected poor would be an important task to ensure them with a permanent address. Dr. Jashim Uddin, Deputy General Manager of PKSF, made a presentation on the policy of the rehabilitation program. The workshop, which was held on July 05, 2007 at PKSF auditorium, was attended by PKSF officers and the representatives from 85 POs. The event included an open discussion on various aspects of the policy in which the representatives from PKSF POs participated.

Supervision and Monitoring of Credit Program 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 also follow strict guidelines.

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 April to June 2007.

Mrs. Parveen Mahmud, Deputy Managing Director, visited the branches of 5 partner organizations - Grameen Krishi Foundation, RDRS-Bangladesh, ESDO, Padakhep Manabik Unnayan Kendra, ASOD in the northern districts of the country during 26-28 May, 2007. She visited different income generating activities of the microcredit borrowers and talked to them. During her visit at Nilfamari unit of RDRS- Bangladesh, she inspected a poultry firm of about 200 poultry of a beneficiary who was affected during the Monga in the previous year. She also visited some other poultry firms and hatcheries of the beneficiaries who were selected for infrastructure development works for temporary employment generation to cope with Monga last year. She also visited different agriculture based income generating activities of the microcredit borrowers.

During May 16-17, 2007 Dr. M. A. Hakim, General Manager, PKSF, visited some of PKSF's partner organizations at Lalmonirhat District. He visited different income generating activities of partner organizations in Lalmonirhat District under the prime project of PKSF. He also made a visit at Tangail to oversee the progress of the activities related to research on overlapping being undertaken by PKSF in collaboration with Institute of Microfinance and to exchange views with the officers engaged in research work.

Blood Donation Program for Thelassaemia Patients

[Acting Managing Director of PKSF Mr. Mosharraf Hossain Khan (second from right) is observing the blood donation program]

PKSF took part in the blood donation campaign for the country's thelassaemia patients by organizing a program jointly with Bangladesh Thelassaemia Hospital on 21 June 2007. Acting Managing Director of PKSF Mr. Md. Mosharraf Hossain Khan inaugurated the program. Dr. M.A.Hakim, General Manager, PKSF and Mr. Mostafizur Rahman Khan, Adviser, Bangladesh Thelassaemia Hospital attended the program. As in the previous year, this year too participation of PKSF staff at the program was encouraging. Besides PKSF staff, the blood donation program was also participated by a good number of officers and employees of its partner organizations (POs). A total number of 46 bags of blood have been collected on that day. Inspired by the success of the blood donation program of last year, PKSF has organized the same in this year and henceforth the holding of the blood donation program may became a regular event.

We Mourn PKSF deeply mourns the loss of Mr. Abdus Samad Mullick, former General Manager (Administration) of PKSF, who expired on 15 June 2007 at the age of sixty due to Lever Cancer at Dhaka. Mr. Mullick joined PKSF in 1994 and served until 11 February, 2001 when he joined as a Joint Secretary at the Ministry of Finance, Government of Bangladesh. He was survived by his wife, two sons and a daughter. Mr. Mullick began his career as a Magistrate of the Government of Bangladesh. He was a vivacious, kind and gentle person who will be deeply missed. We offer our heartfelt condolence to his bereaved family and friends

Acting MD Participates at International Conference and Workshop

[Acting Managing Director of PKSF, Mr. Mosharraf Hossain Khan (first form right) along with other participants at the conference.]

Microfinance Conference in New Delhi Acting Managing Director of PKSF, Mr. Mosharraf Hossain Khan participated at the conference on Microfinancing and Women Economic Empowerment in SAARC Region, held on 27 July 2007 at New Delhi at the invitation of the Government of India. The Conference was inaugurated by Mrs. Renuka Chowdhury, Hon'ble Minister of Women and Child Development, Government of India. All the member states, except Bhutan attended the meeting. Multifaceted issues related to microfinance and women empowerment were discussed at length during the meeting. The Conference was an opportunity to know the diverse models and institutions that empower women through microfinance, which is the key to economic and socio-cultural freedom for millions of poor women, opening the gates of their untapped reservoir of human enterprise.

Microinsurance Workshop in Colombo Acting Managing Director of PKSF, Mr. Mosharraf Hossain Khan participated microinsurance regional workshop in Colombo, Sri Lanka organized by Asian Development Bank on 28-29 June, 2007. The workshop aimed at presenting the insurance professionals and policy makers an opportunity to discuss how to extend commercially viable insurance services to the poor and low income people. Mr. Khan made his presentation on "Micro Insurance in Bangladesh", which covered strategies to extend commercial insurance to the poor. In the presentation, Mr. Khan gave an overview of PKSF and its activities, and subsequently talked about PKSF's relevance to microinsurance, and rationale for microinsurance. Mr. Khan also chaired a session containing a Panel Discussion on 'Facilitating Microinsurance - Role of Donors and Technical Assistance Providers'. Mr. Khan's dual participation, first as a speaker and then as a chair of panel, has played a critical role in disseminating information on progress made so far in microinsurance and microfinance in general. The workshop opined that Bangladesh can set exemplary progress given the opportunities that are yet to be capitalized in microfinance sector.

DMD of PKSF Attends IFAD Loan Negotiation Meeting at Rome

Ms. Parveen Mahmud, Deputy Managing Director (BIPOOL) of PKSF, attended the loan negotiation meeting held from 02-04 July, 2007 in Rome, Italy for the project titled 'Finance for Enterprise Development and Employment Creation (FEDEC)' proposed to be financed by IFAD. She attended the meeting along with a Bangladesh delegation comprised of four members. The members are: Mr. Amalendu Mukherjee, Joint Secretary, Finance Division, Ministry of Finance; Mr. Md. Zakir Hossain, Deputy secretary, Economic Relations Division (ERD), Ministry of Finance and Ms. Nasrin Akhter, Economic Counselor, Embassy of the People's Republic of Bangladesh, Rome, Italy. Mr. Nigel Brett, Country Program Manager, Asia and the Pacific Division, represented IFAD. The total budget of the said project is US$ 57.8 million of which 61% amount will be provided by IFAD. The contribution of PKSF in this project is US$ 22.0 million.

[Ms. Parveen Mahmud, Deputy Managing Director, PKSF is seen along with the participants at the meeting.]

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 other organizations at home and abroad. During the time span of April to June 2007, PKSF organized a number of training courses, study visits, programs mentioned below:

Training / Study Visit Abroad

PKSF organized "Training/Study Visit Abroad" for forty officials of PKSF and its partner organizations working in different districts of the country. The participants were grouped into three to participate at the training/study visit in the countries of Philippines, Thailand and Vietnam.

A group of twelve officers of PKSF participated in a training course on 'Project Formulation, Management, Monitoring and Evaluation'. The training was organized by Development Center for Asia, Africa and Pacific (DCAAP), the Philippines from May 7-18, 2007.

A twelve-member team of PKSF officers participated in a training course on 'Project Management' organized by Asian Institute of Technology (AIT), Thailand from May 21 - June 01, 2007.

A sixteen-member team comprising of thirteen officials of PKSF and three officials from the three partner organizations of PKSF participated in an exposure cum study visit in Vietnam from June 4 - June 13,2007. The Executive Directors of partner organizations of PKSF participated in the study visit. The partner organizations of PKSF are Agro forestry Seed Production and Development Association (ASPADA), Mymenshing; Participatory Development Initiatives of the Masses (PDIM), Dhaka and Samaj Kallyan Sangstha (SKS), Gaibandha. Anh Minh International Training and Consultancy Company (AITC), Vietnam organized the 'Exposure cum Study Visit'.

Training of Trainers (TOT)

PKSF organized a number of training of trainer courses for the mid level officers of PKSF POs. PKSF organized a TOT course for 46 mid-level officers from its 44 POs during 6-10 May 2007. PKSF organized another TOT course for the mid level officers of PKSF POs under FSVGD and Ultra Poor Beneficiaries Project of PKSF. The training was held during 24-28 June, 2007 with the participation of 23 officers from its 5 POs
.
Training on Microcredit Management

PKSF arranged a training course for field workers of PKSF POs on 'Group Dynamics, Savings and Microcredit Management' held during April 8-11, 2007 in SSS, Tangail and from 30 June-3 July, 2007 in Disha, Kushtia. The training course was participated by 71 field workers of 22 POs of PKSF.

PKSF organized a training course on 'Microcredit Management' in two batches during 22-25 April, 2007 and during 17-20 June, 2007. The training course was participated by 46 mid- level officers from 43 POs of PKSF. PKSF organized another training course for the mid- level officers of PKSF POs on 'Monitoring and Supervision' in two batches during 8-12 April, 2007 and during 14-16 May, 2007. The training course was participated by 22 officers from 17 POs of PKSF.

PKSF organized a training course for the 21 accountants of its POs on 'Accounts Keeping and Financial Management' from 20-23 May, 2007.

[A view of the participants of the training on 'Accounts Keeping and Financial Management' at PKSF Bhaban.]

Training on Microcredit Management

PKSF organized a training course for the branch managers, accounts and coordinators of its PO- ALO, Khagrachari, held during 15-16 June 2007 on 'Microcredit Management and Group Dynamics'. The training course was participated by 18 officers of ALO.

New Partner Organizations (POs) of PKSF

At present, the number of POs of PKSF is 223. These POs are working throughout Bangladesh. PKSF intends 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 as the Partner Organizations (POs) to cover more poverty trodden areas of the country is one of the regular activities of PKSF.

During the period from April to June 2007, PKSF has included two Microfinance Institutions (MFIs) as its POs that work in Sadar and Atghoria Upazilas of Pabna and Trishal and Valuka Upazilas of Mymenshing. The profile of the organizations are presented below:

Pabna Protisruti, a voluntary social services and development organization of Pabna District has been accepted as a PO at the 144th Governing Body Meeting of PKSF. The organization was registered with the Department of Social Services in November 1989. The working area covers 66 villages of 9 unions under Sadar and Atghoria upazilas of Pabna District. The organization had a loan outstanding of Tk. 98.57 lac at the field level and had a total of 3263 members in 205 groups under its microcredit program at the time of its inclusion as a PO of PKSF. The organization has disbursed an amount of Tk. 9.42 crore as loan among the members and collected savings of Tk. 48.97 lac. The loan recovery rate of the organization was 99.27 per cent. The General Secretary of the Executive Committee Mrs. Mamata Chakhlader is the Executive Director and CEO of the organization.

Parashmoni Shamajik Unnayan Sangstha, a voluntary social services and development organization of Pabna District has been accepted as a PO at the 144th Governing Body Meeting of PKSF. The organization was registered with the Department of Social Services in October 2000. The working area of the organization covers 12 villages of 6 unions under Trishal and Valuka Upazilas of Mymenshing District. The organization had a loan outstanding of Tk. 15.17 lac at the field level and had a total of 660 members in 36 groups under its microcredit program at the time of its inclusion as a PO of PKSF.

The organization has disbursed loan of an amount of Tk. 77.34 lac as loan among the members and collected savings of Tk. 7.0 lac from the members. The loan recovery rate of the organization was 100 percent. The Secretary of the Executive Committee Mr. Sirajul Islam is the Executive Director and CEO of the organization.

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. 6,747.84 million to the POs from April to June, 2007, presented in the following table:

Loan Disbursement to POs
PKSF disbursed Tk. 7063.96 million under its mainstream microcredit program and Tk. 4700.40 million under its projects from July 2006 to April 2007.

Cumulative loan disbursement from PKSF to the POs was Tk. 40,825.67 million, as of April 30, 2007. The recovery rate of loan from the POs to PKSF was 96.77 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)

** 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=Micro Enterprise Lending, UPP=Ultra Poor Program, MFMSF= Microfinance for Marginal and Small Farmer, ID= Institutional Development..

Loan Disbursement to Borrowers

As of June 30, 2007, the POs through revolving the amount provided by PKSF have disbursed Tk. 293503.23 million. Number of outstanding borrower is 7.72 million, of whom 91.51 per cent are women. The cumulative loan recovery rate from the borrowers to the POs was 99.12 per cent.