Bangladesh Bank and Palli Karma-Sahayak Foundation (PKSF) have launched a Tk5,000 crore special fund to expand financing for cottage and micro enterprises, aiming to create new entrepreneurs, strengthen rural businesses and generate jobs at the grassroots level.
The agreement was signed on Wednesday at Bangladesh Bank headquarters by Bangladesh Bank Director of SME and Special Programmes Department Nawshad Mustafa and PKSF Managing Director Md Fazlul Kader.
The fund will provide increased financing support to micro enterprises while combining credit access with business cluster development and entrepreneurship skills training, Bangladesh Bank said.
The central bank announced the specialised fund on 23 May to accelerate employment creation through PKSF-led programmes. The initiative aims to create new entrepreneurs among rural and marginal communities, empower women and youth entrepreneurs, expand existing small businesses and strengthen value chains linked to micro enterprises.
The programme will be implemented through three components — financial services, business cluster-based value chain development and skills enhancement for entrepreneurs.
PKSF will develop promising business clusters across different regions of the country, with a target of creating 2 lakh jobs in the micro enterprise sector.
The fund will operate as a revolving fund, allowing recovered financing to be reused for new entrepreneurs and ensuring a continuous flow of capital to the sector.
Bangladesh Bank Deputy Governor Md Kabir Ahmed, Bangladesh Bank Deputy Governor Md Anisur Rahman and Bangladesh Bank Director Md Jobdul Islam attended the signing ceremony along with senior officials from both organisations.
The initiative comes as Bangladesh seeks to expand employment opportunities by improving access to formal finance for small businesses, particularly in rural and underserved areas.
Bangladesh Bank said the programme is designed not only to increase financing but also to build sustainable enterprises by linking credit support with market development and skills improvement.
Through PKSF’s nationwide network, the programme will focus on supporting new entrepreneurs, especially women and young people, while strengthening micro enterprises as a driver of inclusive economic growth.
