THE SETTING UP OF PKSF

With the success of Grameen Bank’s program many large NGOs in Bangladesh introduced microcredit program for their target groups. Smaller NGOs followed the same path. But the smaller NGOs lacked adequate financial support for their microcredit program. However, there were not many donors ready to come up with funds for microcredit programs for these small, locally based NGOs. At the same time, for those which received some support there was no guarantee about the continuity of donor funds. However, NGOs had gradually acquired some skill and organizational strength to organize local poor people and to extend financial services to them. In this context, GOB set up the Palli Karma Sahayak Foundation (PKSF) in May 1990 as an apex organization to provide loans to the NGOs which in turn would provide collateral free credit to their poor members and to provide advisory services and training to NGOs for enhancing their institutional capacity. PKSF, set up as a “company not for profit” by the government is unique in its character and operations.