Terming microcredit as a powerful tool for alleviating poverty, finance minister AMA Muhith on Sunday said microcredit programmes have been expanded in the country to a large extent as it now accounts for 33 per cent of the country’s overall credit portfolio.
‘The microcredit accounted for 4 per cent of the country’s total credit in 1986, mostly provided by Grameen Bank. But, now microcredit accounts for 33 per cent of the country’s total credit where the Grameen Bank’s engagement is one third. So, we’ll have to admit that microcredit has been expanded in the country to a large extent,’ he said.
Muhith was addressing a function marking the 24th founding anniversary of Palli Karma -Sahayak Foundation — as part of its year-long ‘Silver Jubilee Celebration’ at the Bangabandhu International Conference Centre.
The finance minister also noted that microcredit does not mean that poverty will get alleviated. ‘But, microcredit is a powerful weapon for alleviating poverty.’
Muhith said it is not possible to alleviate poverty with only microcredit, but there is also a need for education, healthcare services, sanitation and some other things, as their contributions are very much important.
Primary and mass education minister Mostafizur Rahman Fizar spoke as a special guest at the programme held with PKSF chairman and renowned economist Qazi Kholiquzzaman Ahmad in the chair. PKSF managing director M Abdul Karim gave the vote of thanks.
Elaborating the background of the journey of microcredit in the county as well as formation of Grameen Bank in 1983, the finance minister said before that Muhammad Yunus had shown that the poor are credible, they could repay their credit and they do not want to die with the burden of loan.
Following the Grameen Bank’s success, efforts had been there to further flourish the microcredit activities, and then the PKSF was formed in 1990 based on the government ideas.
He also noted that PKSF as a ‘bank’ to the microcredit institutions has expanded microfinance to a large extent as it usually provides around Tk 3,500 crore of credit through its various big and small micro lending institutions.
PKSF chairman Qazi Kholiquzzaman Ahmad said development and poverty alleviation is a political process and if the political process does not support it then it is not possible to gain its goals.
He noted that alongside the government’s goal for turning the country into a mid-income one by 2021, there is also a need for turning the country into a mid-living standard one adding, ‘Then we could feel that we’re in a stable and sustainable position.’
The PKSF chairman also opined that the development plans and their implementation should have to be based on people, not on any industry or institution.
At the function, the PKSF also gave special honour to two renowned educationists — Professor Latifa Akand and Professor Jahanara Haque — for their outstanding contributions to education and women development.
Finance minister AMA Muhith handed over the awards and certificates to the awardees.
Besides, the PKSF chairman Qazi Kholiquzzaman Ahmad gifted a wooden-deer to the finance minister for his 81st birth anniversary.
Set up on May 2, 1990, the total number of associate organisations of the PKSF is 272. The total capital of PKSF is Tk 3,321 crore as per the unaudited accounts as of March, 2014.
The PKSF is providing financial and social services to some 80,88,442 entrepreneurs through some 6,619 branches of over two hundred of its associate organisations in all upazilas of the country.
-With New Age input
