The government aims to create new entrepreneurs and generate employment opportunities for the country’s growing workforce through a new Karmasangsthan Bank project, Finance and Planning Minister Amir Khosru Mahmud Chowdhury said on Monday.
He made the remarks while inaugurating the Small Business Microfinance & Micro Enterprise Fund (SBMMEF) project and distributing loan cheques among entrepreneurs at Osmani Memorial Auditorium in Dhaka, according to a press release.
The Tk50 crore SBMMEF project has been launched as a pilot initiative to promote financial inclusion and create employment opportunities for ultra-poor, marginalised, disadvantaged and climate-vulnerable communities by bringing them into economic activities.
Amir Khosru Mahmud Chowdhury said the initiative would help transform vulnerable populations into entrepreneurs by providing access to finance and supporting economic participation.
He said the government was also prioritising the creative economy by connecting grassroots creative individuals with markets through training, product branding and marketing support alongside financial assistance.
The minister urged Karmasangsthan Bank to take initiatives to integrate creativity and talent into economic activities. He said people involved in creative fields, including music, could be supported by commercialising their work and creating economic value.
Speaking about the bank’s classified loans, he said reducing the classified loan ratio from 4.86 per cent to between 1 per cent and 2 per cent would further strengthen the institution’s credibility. He added that Karmasangsthan Bank was performing well and generating profits.
Bijon Kanti Sarkar, Special Assistant to the Prime Minister, said Karmasangsthan Bank was working with marginalised communities and continued support for these groups would help them progress while contributing to Bangladesh’s development.
Finance Secretary Dr Md Khairuzzaman Mozumder said the SBMMEF project could be expanded nationwide if implemented successfully. He said Karmasangsthan Bank was selected for the initiative due to its experience in microcredit operations, nationwide branch network and achievements in the sector.
Financial Institutions Division Secretary Nazma Mobarek said entrepreneurship development, training and market linkages would make microcredit initiatives more effective by creating sustainable businesses and long-term employment opportunities.
She said the bank’s existing infrastructure and skilled field workforce could help extend the project’s benefits to remote and marginalised communities.
Karmasangsthan Bank Chairman Dr AFM Matiur Rahman said the project would help integrate disadvantaged communities into economic activities by promoting self-employment and entrepreneurship. He urged the government to further reduce loan interest rates, expand financial assistance for marginalised communities and create more employment opportunities.
Karmasangsthan Bank Managing Director Arun Kumar Chowdhury said the bank had set a target of creating employment opportunities for 900,000 unemployed people over the next five years, aligning with the government’s goal of generating 10 million jobs during the same period.
He said the bank aimed to create 150,000 jobs in the current fiscal year. Loans under the SBMMEF project would carry a 6 per cent interest rate, with 50 per cent of loan disbursement prioritised for women entrepreneurs.
Board members of Karmasangsthan Bank and officials from Bangladesh Bank, the NGO Affairs Bureau, the Ministry of Finance, the Financial Institutions Division, donor agencies, media and the bank’s head office and field operations attended the event.
The SBMMEF project, designed for ultra-poor, climate-vulnerable and marginalised entrepreneurs, was inaugurated at the event, where loan cheques were distributed among beneficiaries.
