Bangladesh Economic Review 2021

CHAPTER THIRTEEN
POVERTY ALLEVIATION

Bangladesh has achieved an outstanding development in poverty alleviation during last decade as
a result of the dedicated efforts of the government and the proper and effective implementation of
various public and private development activities. According to household income and
Expenditure Survey (HIES) 2016, poverty rate declined to 24.3 percent in 2016, which was 40.0
percent in 2005. The Government has been working diligently to adopt and implement bold,
strong, people-centric and inclusive policies in poverty reduction. Bangladesh’s success in poverty
reduction through the pursuit of appropriate poverty reduction strategies, such as expanding
social safety nets for people vulnerable to poverty, financial incentives, encouraging micro-
savings, effective disaster risk reduction programmes and building resilience against the effects of
climate change, etc. has attracted the attention of global poverty alleviation experts. Besides,
different government and non-government institutions, autonomous bodies carry out various
activities including providing microcredit to accomplish the government’s efforts of poverty
reduction. In addition, the government offers allowances for widows, destitute women, old aged
people and so on. In FY 2020-21 a total of TK. 95,683 crore has been allocated in the revised
budget for ensuring social safety of the poor population. At present, the stagnation, though
temporary, caused by the ongoing corona pandemic, in global economic activity including that in
Bangladesh, has brought challenges to progress in reducing poverty reduction. A sum of TK.2,500
each has been provided to protect the selected 35 lakh poor families nationwide who faced sudden
unemployment and income loss due to the pandemic. Therefore, the poverty situation in
Bangladesh did not worsen to a scale of catastrophe during the pandemic. On the other hand, the
government is also taking effective and deliberate steps to address the potential impact of the
recent second wave of the COVID-19 pandemic on the country's poverty situation.

Poverty Situation in Bangladesh poverty line. The preferred scale of socio-

economic development may not be possible by
Poverty alleviation is one of the major
keeping a large portion of population below the
indications of the socio-economic development
poverty line. For this reason, poverty reduction is
of a state and society. As a result of collective
a major concern on the policy and development
efforts of the government and non-government
issues of the country. At present, the stagnation,
sectors, Bangladesh has achieved tremendous
though temporary, caused by the ongoing corona
development in poverty alleviation during the last
pandemic, in global economic activity including
few years by the government and private sectors.
that in Bangladesh, has brought challenges to
According to Household Income and Expenditure
progress in reducing poverty. However, the
Survey (HIES) 2016. Poverty rate declined to
timely incentive packages announced by the
24.3 percent in 2016, which was 40.0 percent in
government, such as payment of wages to export-
2005, According to the latest estimate poverty
oriented industry workers, provision of low
rate stood at 20.5 percent in 2019. The
interest working capital with interest subsidy to
government has set up a target to 8th Five Year
affected industry and services sectors including
Plan (2020-2025). Though, Bangladesh is ahead
the CMSMEs, cash support to the extremely
of many developing countries in poverty
poor, distribution of free and low cost food items,
alleviation, still approximately one-fifth portion
expansion of social safety net programs and
of total population of the country lives below the

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providing housing facilities for the homeless 96 and renamed the title of the survey as
people, and job creation activities through Household Income and Expenditure Survey
specialised banks and Palli Karma Sahayak (HIES). The same method applied in the HIES‟
Foundation, have protected the working people in 2000-2016. This method also considered non-
from losing their jobs and the helpless poor from food consumption items for compiling poverty
starvation. index.
Measurement of Poverty Incidence in Trends of Poverty
Bangladesh
The latest HIES was conducted in 2016.
The first Household Expenditure Survey (HES) According to the result of this survey, with in
in Bangladesh was conducted in FY1973-74 and half an era, the incidence of income poverty
up to FY1991-92, few HES were carried out (measured by CBN considering the upper poverty
following the same strategies. HES‟ were line) declined almost 7.2 percentage points (from
accomplished by Food Energy Intake (FEI) and 31.5% in 2010 to 24.3% in 2016). During this
Direct Calorie Intake (DCI) method. According period, the compound poverty reduced per year
to this method, a man having calorie intake of 4.23 percent. On the contrary, the rate of income
less than 2,122 kilo-calories per day is considered poverty declined from 40.0 percent to 31.5
as absolute poor. Conversely, a man having an percent from 2005 to 2010. At that time,
intake of below 1,805 kilo-calories is measured compound poverty annually reduced by 4.67
as hard-core poor. The Bangladesh Bureau of percent. In rural areas poverty reduction rate is
Statistics (BBS) has adopted „Cost of Basic higher (4.68%) than urban areas (1.97%). The
Needs (CBN)‟ for HES for the first time in 1995- trends of poverty are depicted in Table 13.1.
Table 13.1: Trend of Income Poverty

Annual Change (%) Annual Change (%)

2016 2010 2005
(2010 to 2016) (2005 to 2010)
Head Count Index
National 24.3 31.5 -4.23 40.0 -4.67
Urban 18.9 21.3 -1.97 28.4 -5.59
Rural 26.4 35.2 -4.68 43.8 -4.28
Poverty Gap
National 5.0 6.5 -4.28 9.0 -6.30
Urban 3.9 4.3 -1.61 6.5 -7.93
Rural 5.4 7.4 -5.12 9.8 -5.46
Squared Poverty Gap
National 1.5 2.0 -4.68 2.9 -7.16
Urban 1.2 1.3 -1.33 2.1 -9.15
Rural 1.7 2.2 -4.21 3.1 -6.63
Source: BBS, HIES-2016

Household Income, Expenditure and consumption is that „consumption‟ excludes

Consumption lumpy expenditures like durable goods purchases
and some other expenditure such as payment of
The statistics of household nominal income,
tax, insurance, expenses of pilgrimage/hajj,
expenditure and consumption from the surveys
marriage and so on. However, „expenditure‟
1995-96 to 2016 have been provided in Table
includes all such expenses.
13.2. The difference between expenditure and

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Table 13.2: Monthly Household Nominal Income, Expenditure and Consumption Expenditure by
Residence
Average Monthly (Taka)
Year of Survey Residence Consumption
Income Expenditure
Expenditure
National 15988 15715 15420
2016 Rural 13398 14156 13868
Urban 22600 19697 19383
National 11479 11200 11003
2010 Rural 9648 9612 9436
Urban 16475 15531 15276
National 7203 6134 5964
2005 Rural 6095 5319 5165
Urban 10463 8533 8315
National 5842 4881 4537
2000 Rural 4816 4257 3879
Urban 9878 7337 7125
National 4366 4096 4026
1995-96 Rural 3658 3473 3426
Urban 7973 7274 7084
Source: BBS, HIES-2016.

The Table 13.2 expresses that: level. In 2016 rural expenditure was Tk.
14,156 which is higher than rural income
 Household nominal income, expenditure and (Tk. 13,398). This incidence occurred for
consumption expenditure have been the first time in the history of Bangladesh.
increased gradually  In a general analysis it is found that since
 In 1995-96, the monthly household nominal 1995-96 the increase rate of expenditute and
income was Tk. 4,366; which boosted up consumption expenditue is higher than that
3.66 times and rose to Tk. 15,988 in 2016. of income.
Like income, expenditure and consumption
expenditure have also raised to a continuous Deciles Distribution of Income and Gini Co-
speed. In 1996, household monthly efficient
expenditure was Tk. 4,090 which increased
According to the surveys conducted in 2010 and
to Tk. 15,715 in 2016. The increase has been
3.84 times. 2016, the ratio of income by deciles groups and
 The average monthly household expenditure Gini co-efficient in rural and urban areas are
was also increased both at rural and urban presented in Table 13.3.
Table 13.3: Percentage Distribution of Income Accruing to Households in Groups (Deciles) at
National Level and Gini Co-efficient
Household Income Group 2016 2010
National Rural Urban National Rural Urban
100.00 100.00 100.00 100.00 100.00 100.00
Lower 5% 0.23 0.25 0.27 0.78 0.88 0.76
Decile-1 1.02 1.06 1.17 2.00 2.23 1.98
Decile-2 2.83 2.99 3.04 3.22 3.53 3.09
Decile-3 4.05 4.36 4.1 4.10 4.49 3.95
Decile-4 5.13 5.52 5.00 5.00 5.43 5.01
Decile-5 6.28 6.58 6.15 6.01 6.43 6.31
Decile-6 7.48 7.89 6.88 7.32 7.65 7.64
Decile-7 9.06 9.52 8.88 9.06 9.31 9.30
Decile-8 11.25 11.80 10.4 11.50 11.50 11.87
Decile-9 14.86 15.51 13.47 15.94 15.54 16.08
Decile-10 38.09 34.78 41.37 35.85 33.89 34.77
Top 5% 27.82 24.19 32.09 24.61 22.93 23.39
Gini Co-efficient 0.482 0.454 0.498 0.458 0.431 0.452
Source: HEIS, 2016.

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Through a common analysis of Table 13.3, it is 2016 compare to 2010. It was 0.23 percent in
observed that- HIES 2016 whereas 0.78 percent in 2010. The
income share of top 5 percent households
 Despite 50 percent of the total population increased 3.21 percent in 2016. Above all,
belongs to decile-1 to decile-5, the income Gini co-effcient increased in 2016 than in
share of the households jointly shares only 2010.
19.27 percent of total income, Conversely, the
share of these five deciles was together 20.33 Deciles Distribution of Consumption and Gini
percent of total income in 2010. This points Co-efficient
out that share of income by the lower five The Table 13.4 points out deciles distribution of
deciles comprising lower 50 percent people is
1.06 percent lower in 2016 than that of 2010. consumption of HEIS 2016 and 2010 by
 The percentage share of income of the lowed residence for the surveys.
5 percent households slightly decreased in
Table 13.4: Deciles Distribution of Consumption by Residence HIES 2016 and 2010
Household Expenditure Group 2016 2010
National Rural Urban National Rural Urban
Total/ Deciles 100.00 100.00 100.00 100.00 100.00 100.00
Decile-1 3.7 4.00 3.44 3.85 4.36 3.40
Decile-2 4.94 5.28 4.75 5.00 5.57 4.66
Decile-3 5.80 6.14 5.67 5.84 6.41 5.54
Decile-4 6.64 6.96 6.55 6.63 7.22 6.42
Decile-5 7.51 7.81 7.51 7.48 8.03 7.37
Decile-6 8.54 8.79 8.60 8.48 8.97 8.48
Decile-7 9.84 9.94 10.07 9.73 10.01 10.01
Decile-8 11.59 11.58 11.91 11.49 11.63 12.03
Decile-9 14.61 14.15 15.26 14.59 14.07 15.06
Decile-10 26.83 25.35 26.23 26.90 23.63 27.03
Gini Co-efficient 0.324 0.300 0.330 0.321 0.275 0.338
Source: BBS, HIES-2016.
Table 13.4 discloses that- 2016). On the other hand, in the urban area
a small reduction of Gini co-efficient
 Consumptions of families belonging to occurred in 2016 compared to 2010 (0.330%
deciles 1, 2, 3 and 10, reduced a little in in 2016 whereas 0.338% in 2010).
2016 than 2010. Conversely, consumptions
of other deciles groups increased slightly. Head Count Ratio (HCR) on the Basis of CBN
 There is slight increase but not significant Method in 8 Divisions
change of Gini co-efficient of consumption
The head count ratio of incidence of poverty in
in 2016 with respect to 2010.
 In the rural area, Gini co-efficient increased eight administrative divisions using CBN method
a little (0.275% in 2010 whereas 0.300% in is described in Table 13.5
Table 13.5: Division wise Incidence of Poverty (HCR) by CBN Method (in percentage)

Divisions 2016 2010

Using the Upper Poverty Line
Total Rural Urban Total Rural Urban
Dhaka 16.0 19.2 12.5 30.5 38.8 18.0
Sylhet 16.2 15.6 19.5 28.1 30.5 15.0
Chattogram 18.4 19.4 15.9 26.2 31.0 11.8
Barishal 26.5 25.7 30.4 39.4 39.2 39.9
Khulna 27.5 27.3 28.3 32.1 31.0 35.8
Rajshahi 28.9 30.6 22.5 29.8 30.0 29.0
Mymensing 32.8 32.9 32.0 - - -

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Divisions 2016 2010

Using the Upper Poverty Line
Total Rural Urban Total Rural Urban
Rangpur 47.2 48.2 41.5 42.3 44.5 27.9
Using the Lower Poverty Line
Dhaka 7.2 10.7 3.3 15.6 23.5 3.8
Chattogram 8.7 9.6 6.5 13.1 16.2 4.0
Sylhet 11.5 11.8 9.5 20.7 23.5 5.5
Khulna 12.4 13.1 10.0 15.4 15.2 16.4
Rajshahi 14.2 15.2 10.7 21.6 22.7 15.6
Barishal 14.5 14.9 12.2 26.7 27.3 24.2
Mymensing 17.6 18.3 13.8 - - -
Rangpur 30.5 31.3 26.3 27.7 29.4 17.2
Source: BBS, HIES-2016.

Table 13.5 indicates that,  Urban poverty in Sylhet and Chattogram

division increased in 2016 though the average
 Except Rangpur division poverty rate reduced
poverty rate decreased compare to 2010.
in all other division in 2016 compare to 2010.
 Rangpur division has the highest incidence of Projection of Poverty Alleviation
poverty at 47.2 percent. On the other hand, According to „House Hold Income Expenditure
Dhaka division has the lowest incidence of
Survey (HIES)-2016, the country‟s poverty rate
poverty at 16.0 percent.
is 24.3 percent. According to the 8th Five Year
 Incidence of poverty has appreciably declined
Plan, it has been projected to reduce poverty at
in Dhaka division compared to other
15.6 percent by 2025 on the basis of upper
divisions. The reduction rate is almost half
poverty rate and 7.40 percent on the basis of
(16% in 2016 from 30.5% in 2010).
extreme poverty rate. The Table 13.6 depicts the
 In Barishal, Khulna and Sylhet division,
projection of decreasing poverty rate during the
poverty rate is higher in urban areas than rural
areas and 8th Five Year Plan.

Table 13.6: Projection of Poverty Alleviation during 8th Five Year Plan
Poverty Line 2021 2022 2023 2024 2025
Reduction of Moderate Poverty
Poverty Elasticity to GDP - - 1.20 1.20 1.20
Upper poverty line
23.0 20.0 18.5 17.0 15.6
(% of population)
Reduction of Extreme Poverty
Poverty Elasticity to GDP - - 1.40 1.40 1.40
Upper poverty line 12.0 10.0 9.10 8.30 7.40
(% of population
Source: General Economics Division. Planning Commission.

Sustainable Development Goals (SDGs) and Chief Co-coordinator of SDGs Affairs has been
Bangladesh appointed in the Prime Minister‟s Office in order
to effective review of this agenda. General
The United Nations declares „Sustainable
Economics Division (GED) of Planning
Development Goals (SDGs) for 2016-2030
Commission plays the secretarial role of all types
period. It is also known as „Agenda 2030‟. A
of SDGs programmes.

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For effective implementation of SDGs, GED has targets of SDGs during the 8th FYP and until
preparing „Mapping of Ministries by Targets in 2030. The latest publication about SDGs is
the Implementation of SDGs aligning with 8th Sustainable Development Goals: Bangladesh
Five Year Plan‟. According to this publication 40 Progress Report 2018 and 2020. This book is the
Ministries/Divisions including PMO and Cabinet first formal report on implementation progress of
Division have been identified as lead SDGs in Bangladesh. In this report the goal wise
Ministries/Division to 169 targets of SDGs. progress has been described. On the contrary, the
Another book „Data Gap Analysis for measuring challenges on implementing the targets have been
the performance of Sustainable Development identified with way forward.
Goals‟ to identify the data gap required for
On-going Social Safety-net Programmes
implementing and monitoring the SDGs.
The government has been continuing the social
A book titled „SDG Financing Strategy:
safety net programmes with a view to alleviating
Bangladesh Perspective‟ has been published to
poverty through improvement of socio-economic
estimate the resources needed for implementing
condition of the ultra-poor.
SDGs. In addition to that, „National Monitoring
and Evaluation Framework of SDGs: Bangladesh The government has adopted the life cycle
Perspective‟ has been formulated for monitoring approach of social safety net. In FY 2020-21 a
and evaluating the implementation of SDGs. total of Tk. 95,683 crore has been allocated in the
Moreover, „National Action Plan of Ministries/ revised budget for social safety net programmes.
Divisions by Targets for the Implementation of The allocation is 17.75 percent of the budget and
SDGs‟ has been published by GED. The plan 3.10 percent of GDP of the same fiscal year. The
will act as a guideline for the Ministries/ budget allocations of FY 2019-20 and FY 2020-
Divisions to determine the types of projects/ 21 depict in the Table 13.7.
programmes which will be needed to achieve the
Table 13.7: Allocation Pattern of Social Safety-net Programmes and Social Empowerment
(In Crore Taka)
Programmes 2019-20 (Revised) 2020-21 (Revised)
Various allowances 33047.81 33191.15
Food Security and Employment Generation Programmes 15564.11 14822.48
Stipend Programmes 2526.08 6761.64
Cash/Transfer of Materials (Special Programmes) 9154.40 13494.70
Credit Support Programmes 1086.50 9286.82
Assistance for Special Communities 514.90 558.14
Various Funds and Programmes 3098.50 1833.33
Ongoing Development Projects/programmes 16583.97 12452.37
New Projects/Programmes 288.39 3282.30
Total 81865 95683
Source: Finance Division

The current situation, the total budget allocation  A total of TK. 2,500 each has been provided
under 23 incentive packages announced by the to protect the selected 35 lakh poor families
government to address the covid-19 fallout TK. nationwide who faced sudden unemployment
1,28,441 crore and the number of beneficiaries and income loss due to the pandemic. In
addition, To protect the livelihood of the poor
are 5,81,15,211 (up to April,2021). Notable
during the second wave of the virus-surge,.
activities undertaken for the implementation of 2,500 Tk. has been provided to each family
incentive package under social safety net who were previously identified during the
activities are as follows: first wave.

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 Food has been provided for the poor who have Old Age Allowance Programme
suddenly become unemployed due to the
This programme is initiated in 1997-98. In the
outbreak of the corona virus. To this end, a
total of TK. 4 lakh MT of rice and 1 lakh MT beginning, 5 men and 5 women per ward were
of wheat has been distributed free of cost paid Tk. 100 the number of beneficiaries and
across the country as assistance. Besides, rice allowance rate has been increased gradually. Poor
has been sold to low income people at TK. 10 and risky elderly people, in case of men who are
per kg. 65 and in case of women who are 62 will be
 Initiatives has been taken to construct 81,643 under this programme. The number of
houses for the homeless across the country, beneficiaries has been increased from 44 lakh to
out of which a total of 66,898 houses has been
49 (lakhs) in the FY 2020-21, who will receive
completed by April, 2021.
Tk. 500 as monthly allowance.
 In the poorest 112 upazilas in the country, the
coverage of Old Age Allowances Programme, Allowance Programme for Widow, Deserted
Disability Allowances Programme and and Destitute Women
Widow Deserted and Destitute Women
Programme has been increased 100 percent. In order to protect and empower the poor, risky
 A total of TK. 60 crore has been paid to 132 and disadvantaged women, the government of
families of those who were directly engaged Bangladesh introduced the 'Widow and Husband
in enforcing government‟s covid-19 measures. Deserted Women Allowance' programme in
 The target was to provide interest subsidy of 1998-99. Initially, under this programme, 4.03
TK. 2,000 crore against loans distributed by lakh women received Tk. 100 as monthly
all commercial banks to various affected allowance. The number of beneficiaries has been
business. As of April 2021, TK. 1,390 crore
increased from 17 lakhs people to 20.50 lakhs in
has been disbursed.
FY 2020-21, who are receiving Tk. 500 as
A total of TK. 3,936 crore has been disbursed till monthly allowances.
April, 2021 under the TK. 5,000 crore Maternity Allowance for Poor Mother
agricultural refinancingscheme set up to facilitate This programme introduced as social safety-net
farmers to get loans. Another refinancing scheme programme in FY2007-08 in order to provide
of TK. 3,000 crore has been launched for small financial assistance to the poor mother. It not
income farmers and traders in the agriculture only gives allowance facilities but also arranges
sector and as of April 2021, TK. 1,772 crore has different types of awareness building training
been disburse related to health and nutrition. Earlier, a poor
Cash Transfer under Social Safety-net mother gets Tk. 500 each month under this
Programmes programme. From the FY2018-19, the allowance
increases into Tk. 800 per month. The number of
The government provides cash transfer under beneficiaries are 7.20 lakh in FY 2020-21.
social safety-net programme along with food
assistance, food for work, OMS and so on. In FY Working Lactating Mother Assistance Fund
2020-21 an amount of Tk. 33191.15 crore has This programme started since FY2010-11 with a
been allocated in the revised budget for Various view to providing financial assistance to the
allowances programmes. Some selected cash urban poor working lactating mothers.
transfer programmes under the overall social
Under this program, activities are underway to
safety-net programmes are described in brief
increase the awareness and nutritional status of
below:
low-income working mothers and their infants in
the urban areas and to get involved to the
mainstream of development through socio-

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economic self-sufficiency. By providing an amount of Tk. 444.68 crore has been allocated
allowances and awareness training under the for this programme. Those programmes will play
program, beneficiaries have largely been able to a significant role in improving the quality of
avoid maternal mortality risk and meet nutritional living standard and health care of the war
deficiencies. Under this programme a total of wounded and martyrs freedom fighters‟ families.
7,58,402 person‟s has been provided to
Training and Microcredit Programme for the
allowances and awareness training in FY2020-
Freedom Fighters and their Dependents’ Self-
2021.
employment
Honorarium Programme for Freedom
This programme has been implemented to
Fighters
provide skill development training to the
The government has been working relentlessly insolvent freedom fighters and their dependents.
for improving the lifestyle of freedom fighters, It improves the living standards and creates
the heroes of the nation. At present, a freedom employment opportunities for them. Microcredit
fighter gets Tk. 12,000 per month as honorarium. is delivered to them with a view to creating self-
Moreover, the government also increases the employment by utilising the training skill. From
honorarium of the title holder freedom fighter. FY 2003-04 to FY 2019-20, a total of Tk. 39.00
Currently, the government provides Tk. 35,000 to crore allocated for this programme as revolving
the Birshrestha, Tk. 25,000 to Biruttom, Tk. fund. In FY 2019-20, Tk. 1 crore earmarked for
20,000 to Birbikram and Tk. 15,000 to the this programme. Moreover, it has been estimated
Birprotik per month as honorarium. to distribute Tk. 7.00 crore as loan and to recover
Tk. 10.00 crore during the current fiscal year
Furthermore, in FY2018-19, every Freedom
under this programme.
Fighter who is alive has been given Tk. 5,000 as
Victory Day Allowance and for all Freedom Allowance for the Financially Insolvent
Fighters, 20 percent of the honorarium has been Disabled Citizens
given as Bangla New Year allowance. In FY
The Government of Bangladesh is implementing
2020-21, a total of Tk. 3,294.16 crore has been
a multi-faceted programme under the Social
allocated for this programme. Presently a total of
Security Programme through the Ministry of
1,92,080 Freedom Fighters or their dependents
Social Welfare to establish the constitutional
from all districts have been given the monthly
rights of persons with disabilities and to
honorarium being distributed electronically
implement national and international
through G2P.
commitment. Under this programme, an
Honorarium and Medical Allowance for allowance was given at the rate of Tk. 200 to
Injured Freedom Fighters and Shaheed 1,04,166 disabled people. The number of
(Martyr) Families beneficiaries has increased from 15.45 lakh to 18
lakh in FY2020-2021 who are receiving 750 tk.
The government is also working for the welfare
as monthly allowance.
of the family of martyrs and war-wounded
freedom fighters. Separate programmes have Stipend for the Disabled Students
been initiated for the treatment and honorarium
With the aim of ensuring education for the
of martyr‟s family and war-wounded freedom
children with disabilities that they can participate
fighters. This programme was introduced with a
in national development through higher
view to improving living standards and retains
education, the Government launches 'Education
the sound health of the wounded freedom fighters
Scholarship Programme for Students with
and member of shaheed families. In FY 2020-21,
Disabilities' through the Ministry of Social

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Welfare in the FY 2007-08. Initially, Under this Programme for Improving the Livelihood of
programme allocation was for 12,209 person, Transgender (Hizra) People
stipends is being provided at the primary,
The government works for the transgender
secondary, higher- secondary and higher levels at
(Hizra) people, the neglected community of the
monthly rates of Tk. 750, 800, 900 and 1300.
society. In FY2012-13, the government started
The number of beneficiaries are 1 lakh in the FY
this programme at seven districts as pilot basis.
2020-21.
Now, the programme is executing whole of the
Capitation Grant for Non-government
country. In FY 2020-21, a total of Tk. 5.56 crore
Orphanage
has been allocated for this programme. It is
The government allocates capitation grant for the estimated that 5,745 transgender people directly
non-government orphanages. Capitation grant is benefited through this programme.
provided for up to a maximum of 50 percent
Programmes under Food Assistance:
orphans in a private orphanage registered by the
Department of Social Services. A grant of Tk 120 Food Friendly Programme: In 2016, the
crore is provided to 1 lakh residents during FY branding program of Honorable Prime minister
2020-21. ''Food Friendly Programme'' was launched.
Under this programme, 50 lakh ultra-poor
Development of the Living standards of the
families (Widows, elderly, women led family,
gypsy community:
women led downstream poor families) living in
During the period 2012-13, the programme the union level are enlisted. The families enlisted
started to improve the standard of living of the in this programme are distributed 30kg rice per
people of Gypsy, Dalits and Harijans by month in the workless month/lean season at Tk.
transforming them into skilled manpower. The 10/kg. In the current FY 2020-2021, 4.87 lac MT
programme was implemented in seven districts of of rice have been distributed under this
Dhaka, Chattogram, Dinajpur, Patuakhali, programme.
Jessore, Naogaon and Habiganj districts as a
Initiatives Open Market Sale (OMS)
pilot project, respectively. Now this programme
is being implemented in 64 districts. The amount This programme is initiated to ensure the food
allocated in FY 2020-21 is about 9.23 crore and security of the low income people. As a result,
the total number of beneficiaries are 10,098 . people of low and limited income can purchase flour
and rice. In FY2020-2021 (February, 2021), 0.79
Development of the Living standards of the
lakh MT of rice and 2.16 lakh MT of flour have been
backward community:
distributed.
The present government has taken various
Distribution of Fortified Rice under
activities to improve the quality of life of the
Vulnerable Group Development: Ministry of
backward people to integrate them into the
Food started the distribution of Pushti Chal or
mainstream of society. From the FY2012-13 to
fortified rice from the first half of 2014 in Five
the next FY2018-19, development programmes
(05) upazilas of three districts. Especially for the
of the Gypsy and the backward people were two
Distinguished Community Development as well
together. The programme is separated from the
as for the vulnerable people through Vulnerable
FY 2019-20 and is being run as a separate
Group Development (VGD) programme in
programme called „Living standards development
collaboration with Ministry of Women and
programme for the backward people‟. In FY
Children Affairs with the support of the World
2020-21, a total of Tk. 57.87 crore has been
Food Program. On the occasion of the golden
allocated for this programme.
jubilee of independence, Fortified Rice will be

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Bangladesh Economic Review 2021

distributed in 170 upazilas including 70 new programme 52,236 metric tons of food grains
upazilas under the VGD program in 2021. have been distributed. 4,67,550 packets dry food,
TK. 1, 60,000 for baby food and TK. 3,36,000
Besides, Fortified rice kernels are mixed with
for cattle fodder have been distributed.
powdered vitamin-A, vitamin-B-1, vitamin B-12,
folic acid, iron and zinc to meet the micronutrient Employment Programme for Ultra-Poor
requirement of vulnerable people. In 2021, On
In FY 2009-10, the activities started in the whole
the occasion of the golden jubilee of
country by giving preference to the poorest and
independence, fortified Rice will be distributed in
workable people of rural areas. The objective of
150 upazilas including 50 new upazilas in Food
the programme is to: (a) Increase employment
Friendly Program (FFP).
and purchasing power for the poorest
Food For Work (Kabikha) and Taka For unemployed people in Bangladesh; (b) Create
Work (Kabita) Programmes: wealth for the population and the country in
general; and (c) Improve infrastructure and
Ministry of Disaster Management and Relief
communication development, proper
conducts these programme. This programme has
maintenance and development of environment. In
been operating for rural infrastructure renovation.
FY 2020-21, allocation of Tk. 1,650 crore has
A total of Tk. 660.03 crore has been allocated for
been received of which TK. 825 has been
this programme in the FY 2020-21.
allocated to the field administration as first phase.
Vulnerable Group Feeding (VGF) Programme
Ongoing Programmes/Projects under the
Generally, this assistance is provided to the Social Safety-net
families affected by the disaster after the disaster
A total of 54 projects/programmes are
has been restored. This assistance is provided to
implemented in FY 2020-21 for poverty
every family for 20 to 40 kg monthly 2 to 5
reduction under social empowerment sector.
months. Poor people also get VGF help at
Among these 47 are running projects/
various religious festivals. In FY 2020-21,
programmes, the rest 7 are new projects/
1,00,068.69 MT food grains have been
programmes. An amount of Tk. 12,276.01 crore
distributed for this programme.
has been allocated to implements these projects.
Test Relief (TR) programme Brief descriptions of some projects/ programmes
In FY 2020-21, an amount of Tk. 556 crore has of social safety-net are given below:
been allocated under this programme. Out of this, Ashrayan-2 (Poverty Alleviation and
a total of Tk. 278 crore in the first phase and Tk. Rehabilitation) Project
278 crore in the second phase has been allocated.
Ashrayan project was commenced in 1997 for
Emergency Humanitarian Assistance rehabilitating the landless, homeless and rootless
Programme (GR, Blanket, Coriander, Dry families. A number of 1,67,548 landless, rootless
Meal and Dates: Under this programme, in FY and homeless people have been rehabilitated
2020-21 a total of 29,192 bundle C.I. sheet and through Ashrayan project through construction of
Tk. 8,75,76,000 have been distributed for the barrack houses and a number of 1,53,815 houses
construction of houses of the distressed and have been built on one‟s own land. A total of
helpless family members. A total of TK. 3,64,346 families have been rehabilitated through
42,52,50,000 has been allocate for purchase of Ashrayan project. On the occasion of Mujib
blanket for prevention of cold in winter season. Year, in the first phase, a two-room semi-pucca
Under GR (Cash) programme, a sum of Tk. house for 66,189 families have been constructed
18,64,32,562 was provided and under GR (Rice) (title deed jointly in the name of both husband

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Bangladesh Economic Review 2021

and wife) allocating of 2(two) dcml of programme among the disaster affected loan
government khas land. At the same time, 3,715 receivers.
families have been rehabilitated in 743 barrack
Poverty Alleviation Activities of Rural
houses. Providing homes for 69,904 families has
Development and Co-operative Division
become a rare history.
The Rural Development and Cooperative
According to future plan a massive work of
Division (RDCD) has formulated short and
constructing houses for the landless and homeless
medium term action plans for poverty reduction.
families will be started just after the list of
These are formulated according to the guidelines
landless and homeless families are finalised.
of „National Rural Development Policy-2001‟.
Grihayan Tahabil Activities of few projects relate to poverty
alleviation and social safety-net as well as
Grihayan Tahabil was launched in FY1997-98
actions of few Departments/Foundations under
considering the housing problem along with
Rural Development and Co-operatives Division
reducing poverty of homeless poor and low
are discussed describe below:
income rural people. Bangladesh Bank
coordinates the whole activities of the Amar Bari Amar Khamar
programme. Grihayan Tahobil provides Tk.
‘Amar Bari Amar Khamar’ (My House My
1,30,000 as housing loan for each house.
Farm) is a permanent poverty model. The project
Bangladesh Bank allows loan to the
is being implemented to build every home as a
implementing NGOs at a simple interest rate of
center of economic activity. People having land
1.50 percent and the NGOs provide loans to the
up to 50 decimal, those who live in the
beneficiaries at the rate of 5.50 percent interest.
hilly/char/backward localities having maximum
The recovery period is 3 to 10 years. 616 NGOs
one acre of land are the target group of the
are executing this programme at 404 upozilas of
project. The objective of sustainable development
64 districts. Up to February, 2021, Tk. 417.24
goals is to reduce all types of poverty
crore has been disbursed under this programme.
everywhere, as part of SDG‟s „Mission-1 and
In total 88,105 houses have been built and
„Mission-2‟ to free from hunger, food security
4,40,525 rural poor people have directly
and improved and expansion of sustainable
benefitted through this programme.
agriculture' and 'Mission-5' 'Gender Equality,
The project not only constructs home for the Empowerment of women and girls‟. The project
homeless people but also finances to build is being implemented in every ward of all unions
dormitory/ hostel for female workers especially of all the districts of the country.
for the garment workers. A 12 storied hostel for
The special feature of the project is to increase
the poor female workers has been constructed at
agricultural and non-agricultural production,
with a cost of Tk. 24.61 crore at Ashulia, Savar
income and employment opportunities by the
through financial assistance of Grihayan Tahabil.
beneficiaries and their sustainable use of
As many as 744 women workers will get
sustainable capital. Up to February, 2021, in total
residential facility in this hostel. Moreover,
12,0465 Village Development Organizations
Grihayan Tahabil has sanctioned Tk. 2.00 crore
(VDOs) has been formed under this project.
to the „Ghore Phera Kormosuchi’ implemented
Almost 56.79 lakh poor people directly or
by Bangladesh Krishi Bank. Meanwhile, Tk. 25
indirectly have been benefitted through these
crore is sanctioned in favor of Ministry of Labor
VDOs.
for the construction of Labor Hostel/Dormitories
by Department of Labor. Moreover, a total of Tk. As a result of successful implementation of this
29.92 crore has been donated from this project, the project will play a vital role in

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Bangladesh Economic Review 2021

promoting poverty-free, middle-income crore and the working capital is Tk. 14,473.14
countries, by 2021, by ensuring permanent and crore.
sustainable poverty reduction of 56.78 lakh poor
Bangladesh Co-operative Insurance Limited‟ is
families of 2.83 crore beneficiaries.
established to ensure economic development and
The government has established and set up Palli security of the members of the co-operative
Shanchoy Bank (PSB) for managing and societies. At present, the number of members of
mobilizing permanent fund developed by the this association is 501. With a view to making
Village Development Organizations earlier co-operative activities fruitful and dynamic in the
formed under „Amar Bari Amar Khamar’ project. country the Department of Co-operative
Banking operation is being conducted through implement different projects/ programmes time
485 branches of 485 upazilas of the country. to time. At this moment two projects tilled
„Improved Breed dairy farming for livelihood
Comprehensive Village Development
development of disadvantage women‟ and
Programme (CVDP) 3rd Phase
„Expansion of Dairy Co-operative in
The project “Comprehensive Village Gangachara upazila for employment generation
Development Programme (CVDP)-3rd phase” is through milk and meat production‟ are
being implemented under Rural Development implementing by the department.
and Cooperative Division to reduce the level of
Bangladesh Rural Development Board
poverty and to improve the quality of life of the
(BRDB)
people in the poverty stricken area of rural
Bangladesh. During the project period (January, Poverty alleviation through the development of
2018 to December, 2021), a total of 14,30,163 the rural economy is one of the pledges in the
members of the cooperatives (both men and present government. To achieve this goal,
women) will be trained for different duration. Bangladesh Rural Development Board (BRDB)
Targeted output/physical targets of the project is working in the rural development programme.
are respectively: number of Society formation BRDB has successfully implementing 118
10,035 and number of member enrolment projects/ programmes.
14,50,000 Till February 2021, about 7,845
At present, BRDB is operating 5 ADP listed
Societies have been formed and 7,08,497
projects/ programmes regarding to poverty
members have been enrolled. A total of 1,49,412
alleviation and social empowerment. These are:
people have become self-employed under this
(a) Participatory Rural Development Project-3,
project.
(b) Employment Guarantees Scheme for the Poor
Department of Co-operatives of Northern Region (UDKONIK)-2nd phase; (c)
Comprehensive Village Development
Cooperative is a worldwide tested and recognized
Programme; (d) Poverty Reduction through high
medium for poverty alleviation and economic
valued nutritious Minor Crops production and
development. At present, the total number of
Marketing programme and (e) Gaibanda
registered cooperatives in the country is
Integrated Rural Poverty Alleviation Project. In
1,93,750. Among them, the number of primary
addition, BRDB implements 15
co-operative societies are 1,92,528, the central
projects/programmes related to poverty
co-operation number are 1,200 and the national
reduction, women empowerment and microcredit
association has 22. The total number of members
through its own fund. Up to February 2021,
of the cooperative societies are 1,15,38,665
BRDB cumulatively disburses Tk. 18,561.08
people, the share capital is about Tk. 1,801.39
crore. On the contrary, a total of Tk. 16,966.18
crore, the savings deposit amount is Tk. 8,444.88
crore has been recovered at the same period.

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Bangladesh Economic Review 2021

Bangladesh Academy for Rural Development the main land. Two GoB funded projects in the
(BARD) name of „Livelihood Improvement of the Poor
People in the Char Islands of Sariakandi and
Bangladesh Academy for Rural Development
Sonatola Upazilas under Bogura District‟ and
(BARD) Cumilla is the pioneer institution for
Project on „Poverty Reduction of Marginalised
training, research, action research and innovation
People of Kurigram and Jamalpur Districts‟ is
for rural development in Bangladesh. Since its
being implemented by the Academy to graduate
inception up to February 2021, BARD has
from poverty and ensure sustainable rural
conducted 8,697 training courses where 2, 96,368
livelihoods and food security of 41,000 people by
participants participated.
increasing the household income. And also
Since its inception in 1959 to December 2021, another action research project for restoration of
BARD has been carried out 739 researches. At agricultural land, ‘livelihood improvement of the
present BARD has been implement 14 projects rural community and construction of multi-stored
regarding to poverty alleviation, microcredit, building with modern urban facilities Palli
women education, nutrition development, Janapad’ Project is being implemented by RDA,
agricultural development and technology Bogura.
transfer.
On the other hand, in order to reduce
Rural Development Academy (RDA) Bogura groundwater depletion and water saving in
Rural Development Academy (RDA), Bogura agricultural production technology project is
established in 1974. The mission of the being implemented in 200 areas of 40 districts of
academy is to provide training, conduct the country with the funding of the entire
research, action research and offer advisory Government of Bangladesh. For increasing of
services. The academy arranges training agricultural cropping intensity through two-layer
courses on modern technology transfer, skilled agriculture with solar-powered irrigation system
development and human resource development. projects is being expanded in 32 districts of the
From March, 2020-February, 2021, RDA has country. In order to achieve the sustainable
accomplished training for 121 batches and a development goals of the government, two
total of 5,996 participants attended the training. separate rural development academies are being
From inception to February, 2021, the academy constructing in Rural Development Academy,
has organized attended by 5,74,873 Rangpur and Sheikh Hasina Rural Development
participants. Academy, Jamalpur under the supervision of
RDA, Bogura.
RDA in collaboration with Bangabandhu
Sheikh Mujibur Rahman Agricultural Palli Daridro Bimochon Foundation (PDBF)
University has launched a one year post PDBF operates 403 offices in 357 upazilas in 55
Graduate Diploma in Rural Development. districts. In order to create self-employment and
Already, 92 students have completed this increase financial capacity through income-
course. From March, 2020-February, 2021, the generating activities, loan assistance of Tk.
academy has done 16 research projects. On the 12,866 crore has been provided to the
other hand, until February, 2021 altogether 492 beneficiaries. PDBF's activities have directly and
research and 43 actions research projects have indirectly provided employment to approximately
been executed by RDA. 22 lakh people and about 65 lakh people have
Apart from those RDA has special focus on been benefited. About 97% of the beneficiary
Char Peoples. Because they are more vulnerable members of PDBF are women.
in all respect as the sandbars are isolated from

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Bangladesh Economic Review 2021

Small Farmers Development Foundation executes training on various income generating

(SFDF) activities on farming and off-farming sector for
self-employment of small and marginal farmers
The Foundation commenced in 2005 but started
and landless unemployed people. BAPARD
its activities in February 2007. At present the
conducted training for 43,372 participants of
activities of the Foundation and its project are
stakeholders as well as officials from its
being implemented through 173 upazila offices
inception on FY 2001-2002 to till FY 2020-2021
of 36 districts of the country. At the end of the
(up to February, 2021).
month of February, 2021 a total of 2,14,235
members have been enrolled through the 6,841 Bangabandhu Youth Credit programme
village centers of SFDF where women members
'Bangabandhu Youth Credit' programme has been
are 94 percent. The enrolled member is providing
adopted to generate employment opportunities
Microcredit and Microenterprise loan and trade
and to poverty alleviation on the occasion of the
based training to strengthen their income
birth centenary of the father of the nation the
generating activities. As SFDF providing strong
great Bangabandhu Sheikh Mujibur Rahman.
monitoring, loan and training support the
beneficiaries are being coming out from the Hon'ble Prime Minister Sheikh Hasina has
poverty level. Among the members an amount of termed the 'Bangabandhu Youth Credit'
Tk. 1,247.94 Crore has been disbursed programme as a startup programme. Under this
cumulatively as collateral-free credit support and programme, a detailed action plan has been
against that an amount of Tk. 1075.00 Crore has adopted and is being implemented to provide
been recovered through weekly and monthly loans to 2.00 lakh trained unemployed youth in
installment basis during the period. The recovery 2020 and 2021. Under this programme, an
rate of credit stands to 97 percent. The weekly amount of Tk. 685.97 crore have been disbursed
savings of the enrolled beneficiaries of the in favor of 45,281 entrepreneurs till February,
Foundation have been accumulated at Tk. 92.80 2021.
Crore as their own capital. Own Loan Programme of the Bank:
Bangabandhu Academy for Poverty Under the own loan programme, up to February
Alleviation and Rural Development 2021, the bank distributed an amount of Tk.
(BAPARD) 6,081.97 crore among 5,96,096 beneficiaries. On
Bangabandhu Poverty Alleviation Training the other hand, Tk. 5,984.37 crore has been
Complex established at Kotalipara upazila of recovered during this period.
Gopalgonj district in 1997. The mission of the  Microcredit Programme for Self-
complex is to improve livelihood by getting rid retired/Retrench Worker/Employees of
of poverty of rural people especially living in the Mills/Industries and Establishment
south-western part of the country. Later on, it According to the memorandum of
was renamed as `Bangabandhu Academy for understanding sign with the Ministry of
Poverty Alleviation and Rural Development Labour and Employment, the
(BAPARD)‟ in 2012. Karmasangsthan bank operates this
programme for reemployment of self-
BAPARD mainly conducts training and research retired/retrench workers/ employees of mills/
and arranges training programmes for industries. Up to February, 2021, a total of
government and non-government officials. It Tk. 111.03 crore has been distributed among
organises workshops, conferences and seminars 20,008 beneficiaries At the same time, the
related to rural development and poverty Tk. 102.18 crore has been recovered.
alleviation as well. Moreover, BAPARD

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Bangladesh Economic Review 2021

 Employment Programmes of 2,393 entrepreneurs who are involved in agro-

Karmasangsthan Bank: based industry directly benefited.
The government established Karmasangsthan
Bangladesh Bank Loan Programme
Bank in 1998 to create self-employment
opportunities for unemployed youths Karmasangsthan Bank has been operating this
especially, educated unemployed youths. The programme with the loan assistance of
bank provides loans to the youths with a view Bangladesh Bank since FY2015-16. Later on,
to involving them in productive and income
from FY2016-17, the bank commenced milk
generating programmes. At present, the bank
runs its activities through 255 branches across production and artificial insemination refinance
the country. scheme. Up to February, 2021 Tk. 771.75 crore
 Credit Programme for Agro-based has been distributed among 33,545 young
Industries entrepreneurs under this programme. Information
With the financial support of the Ministry of regarding to loan distribution and recovery of
Finance Karmasangsthan Bank has been Karmasangsthan Bank is presented in Table 13.8
conducting this programme. An amount of
Tk. 69.04 crore has been disbursed among
beneficiaries till February, 2021. As a result,
Table 13.8: Disbursement of Loan by Karmasangsthan Bank
(In Crore Taka)
Name of The Rate of Employment
Disbursed Recoverable Recovered Beneficiary
Programmes Recovery Creation
1 Bangabandhu Youth
685.97 71.78 70.50 98% 45281 163464
Credit programme
2 Covid-19 Credit
Assistance Programme
for proverty Alleviation 283.44 22.46 22.12 98% 17154 61926
and Employment
Generation
3 Own Credit Programme
(including SECP,
6081.97 6323.94 5984.37 95% 596096 2151907
Consumer and
Bangabandhu Juba Rin)
4 Special Programmes
a) Credit programme for
Self-retired/ retrenched
workers/ employees of 111.03 109.41 102.18 93% 20008 72229
Mills, Industries and
Establishment
b) Credit programme
for Agro-based 69.04 79.86 77.47 97% 2393 8639
Industry
c) Fisheries and
Livestock Loan
771.75 399.72 386.87 97% 33545 121097
Assistance Programme
of Bangladesh Bank
d) Staff loan and other
27.43 406.28 402.34 99% 5599 20212
loans
Total 8030.63 7319.21 6953.43 95% 720076 2599474
Source: Karmsangsthan Bank (up to February 2021)

Palli Karma Sahayak Foundation (PKSF) executes activities all over the country through its
278 Partners Organisations (POs). Nearly, 91
Palli Karma-Sahayak Foundation (PKSF) works
percent members of the POs are female. In the
for poverty alleviation, social safety-net and
first six months of the current financial year,
women empowerment in 1990. The foundation
PKSF disbursed BDT 2,179.09 crore to its POs

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Bangladesh Economic Review 2021

for various financial services. At the same time the important safety net programme of the
the borrowers level financial services of the POs present government. To create the opportunity
amounted to BDT 27,368.71 crore. Up to for women in employment sector or in productive
December 2020, cumulative financial assistance role, this programme is well recognized and
from PKSF to POs and POs to borrowers is BDT practicing in the country. This programme is
40,792.50 and 4,31,796.10 crore respectively. continuing from FY 2003-04 to FY 2020-21 up
PKSF approaches poverty eradication and to January, 2021 the total allotment is 53.53 crore
beyond poverty development in a manner that taka only and total Tk. 144.59 crore has
essentially invokes the basic tenets of the UN- distributed from the revolving fund among
adopted sustainable development approach. 1,42,174 poor women of 489 Upazila Women
PKSF has established a platform titled „People‟s Affairs offices in 64 District.
Voice: Strengthening the Implementation of
Microcredit Programme Monitoring through
SDGs in Bangladesh‟ to review the challenges
Microcredit Regulatory Authority (MRA)
pertaining to the attainment of SDGs. To attain
objectives, PKSF provides demand-driven The Microcredit Regulatory Authority (MRA)
financial and non-financial services to the poor was established in 2006. The prime
through its Partner Organizations (POs). At responsibility of the authority is to ensure
present IFAD Executive Board has approved an transparency and accountability of the
extension of the PACE project for two years (up microfinance institutions of the country. It also
to December 2022) and additional finance of regulates the microfinance institutions which are
USD 18.0 million under the project to mitigate operating their activities in the country.
negative impacts of the COVID-19 pandemic on MRA provides permission to run microcredit
the worst affected microenterprise sector. An activities. It also collect and preserve information
additional 1,68,000 entrepreneurs will be regarding microcredit programmes of all
receiving technical, technological and marketing government and non-government organisations.
assistance along with financial services in the National Database of microcredit is going to be
extended PACE project period. prepared in order to modernise the activities of
Besides, To cope the challenges posed by the MRA.
Covid-19 pandemic, the prime minister has Up to February, 2021, MRA issued licenses to
announced various stimulus packages to support 880 institutions to carry out microfinance
the affected people of the country–key among activities. On the other hand, the authority has
them is a fund worth BDT 500 crore sanctioned cancelled the certificate of 134 institutions for
in favour of PKSF. Using the fund, PKSF and its their failure of doing satisfactory function. Up to
partner organisations across the country have June 2020, the amount of loan and outstanding
been implementing a special and flexible credit savings of these institutions are Tk. 888.64 crore
programme titled „Livelihood Restoration Loan‟ and Tk. 373.9 crore respectively.
(LRL) to revive the lives and livelihoods of the
Covid-19 affected small and marginal farmers, Microcredit Activities of Major NGOs
entrepreneurs related to small and cottage The Non-govenment organisatons (NGOs)
industries, trained youth, unemployed youth and execute microcredit programmes along with the
migrant workers who returned home having lost government organisations.The NGOs mainly
their jobs. work for poverty alleviation, education, health,
Microcredit for Women Self-employment human resource development and so on. The
overall microcredit activities of 8 major NGOs
Micro-Credit activities for self- employment of are described below:
poor and distress Women programme is one of

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Bangladesh Economic Review 2021

BRAC contributes to establish justice and peace of the

society. Activities of SSS now spread out at 200
BRAC, the largest NGO of the world has great
upazilas of 32 districts of the country. 7.81 lac
contribution to the socio-economic development
are beneficiary families (among them 6.12 lakh
of Bangladesh. It is the biggest microcredit
families in financial service programme, 1.69
providing NGO of the country. It operates
lakh families in social programmes and 3.50
different types of programme through
thousand in disadvantaged children families)
microcredit. The activities which are being
cumulative credit disbursement of Tk. 25,924.67
implemented by BRAC relates to economic and
crore.
social development, health, education, human
rights and legal services, and disaster Shakti Foundation
management. In addition, Up to December, 2020,
This organization is engaged in providing
BRAC disbursed an amount of Tk. 2,86,879.81
microcredit facilities for the deprived women
crore. During this period in total 8,127,942
living in the slums of Dhaka, Chattogram,
people have been benefited out of which 84
Khulna, Cumilla, Bogura, Rajshahi and other
percent are female.
major cities and towns. Microfinance is the core
ASA programme of Shakti Foundation. Moreover, it
provides service for healthcare, business
ASA started its microcredit programme in 1991
entrepreneurship and social development of poor
as a specialised microcredit organisation. It’s
woman. Up to February 2021, an amount of Tk.
cost-effective and sustainable microfinance
11,573.56 crore has been disbursed and Tk.
programme has been recognised as a special
10,513.16 crore has been recovered by the
model of poverty alleviation. Up to February,
foundation.
2021, ASA distributed Tk. 2,40,471.99 crore
cumulatively among 6,955,551 beneficiaries TMSS
among them almost 90 percent are female.
TMSS has been implementing microcredit
BURO Bangladesh programme in order to make the poor people
self-employed by improving their socio-
BURO is implementing its activities through 482
economic conditions. It also works for expansion
upazilas of the country. It mainly works for
of business and increase the growth of
lower income groups. In FY 2020-21, BURO
production. TMSS implements credit programme
distributed Tk. 5296.5 crore as loan among
in 376 upazilas of 58 districts. Up to june 2020,
1,855,457 beneficiaries out of them 91 percent
Tk. 31,586.04 crore has been as microcredit
are female.
among 76,92,607 beneficiaries.
Caritas
Proshika
Caritas works for education and poverty
Proshika started its journey in 1976 from
reduction for marginal people. Up to December
Manikgonj with a view to removing poverty from
2020, Caritas disbursed Tk. 4,984.71 crore
society. Currently, it runs activities in 54
among 2,57,692 beneficiaries.
districts. Until February 2021, Proshika
Society for Social Services (SSS) distributes Tk. 7441.71 crore as loan and
Society for Social Service (SSS) works for 2,807,497 poor people get benefit from this
improving the socio-economic condition of NGO.The status of micro-credit programmes of
destitute and underprivileged people. It also the major NGOs is presented in the Table 13.9.

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Bangladesh Economic Review 2021

Table 13.9: Status of Microcredit programmes of Major NGO

Cumulative

NGOs 2014 2015 2016 2017 2018 2019 2020 ( Up to

December
2020)
BRAC
Disbursemen 15190.49 19298.28 24302.78 29317.13 35562.76 43171.58 38,426.29 286,879.81
t
Recovery 13281.72 171134.81 21563.66 26486.85 31551.41 38956.55 33,312.71 256,753.42
Beneficiaries 5510905 5957954 5957954 6483486 7114726 7496383 8,127,942 8,127,942
Female 4876445 5188206 5188206 5633121 6165119 6163392 6,827,96 6,827,496
Male 634460 769745 769745 850365 949607 1332991 1,300,446 1,300,446
*ASA
Disbursemen 14638.57 20905.68 26958.63 29681.42 29681.42 28368.31 25,215.57 240,471.99
t
Recovery 11795.32 17650.08 23515.37 28953.34 28953.34 29,104.35 24,262.06 226,650.51
Beneficiaries 6902024 7686255 7839119 7577355 7577355 6,828,698 6,766,906 6,955,551
Female 6319502 7033521 7171271 6930474 6930474 6,235,926 6,143,657 6,306,804
Male 582522 652734 667848 646881 646881 592,772 623,249 648,747
*BURO Bangladesh
Disbursemen 2362.85 2630.02 3951.54 5439.38 10460.50 9148.5 8220.4 5296.5
t
Recovery 2290.35 2355.88 3154.81 4604.82 8978.80 7095.3 717408 5414.9
Beneficiaries 1053035 1269411 1356572 1449085 1649923 1,662,689 1,963,060 1,855,457
Female 982474 1168945 1241687 1329719 1501564 - - -
Male 70561 100466 114885 119366 148359 - - -
Caritas
Disbursemen 297.35 317.16 380.45 448.52 483.20 542.16 458.49 4,984.71
t
Recovery 291.62 310.07 346.55 412.05 462.21 509.85 4,22.11 4,645.91
Beneficiaries 37897 29217 6619 2526 4070 2303 522 2,57,692
Female 22818 18421 7832 2429 2154 2619 153 223,263
Male 15079 10796 1213 97 1916 - 369 34,429
SSS
Disbursemen 1316.32 1686.26 1149.67 2762.50 3135.20 3354.17 3422.29 25924.67
t
Recovery 1229.33 1507.17 923.24 2317.68 3073.78 3089.0 3262.72 23361.27
Beneficiaries 473116 507295 579182 616585 600906 6,44,453 7,58,275 7,81,530
Female 462567 498518 568694 600529 585951 6,28,919 7,36,247 7,58,331
Male 10549 8777 10488 16056 14955 15,534 22,028 23,199
Male
SHAKTI Foundation

Disbursemen 618.65 745.79 1001.45 1175.03 1322.37 1765.68 1,214.19 11,230,72

Recovery
t 570.35 669.96 826.49 1017.02 1232.81 1507.48 1,226.60 10,245.48
Beneficiaries 496040 - - 521751 - - - 419,976
Female 47680 - - 507628 - - - 413,821
Male 16360 - - 14123 - - - 6,155
TMSS
Disbursemen 1894.49 2963.80 2623.98 3305.85 4245.03 4817.71 4391.31 35771.05
t
Recovery 1623.98 2540.42 2460.35 2918.28 3838.84 4480.41 4096.44 31948.72
Beneficiaries 564127 519118 459558 503942 576683 108360 861349 13491831
Female 544383 499910 441176 492722 568207 60972 784659 12891582
Male 19744 19208 18382 11220 8476 47388 76690 600249
Proshika
Disbursemen 222.42 219.51 178.02 255.75 351.18 539.52 6730.20 7441.71
t
Recovery 215.98 215.22 162.78 231.68 297.85 473.52 6446.21 7081.70
Beneficiaries 108590 92535 79119 110483 140471 240335 2807497 2,807,497
Female 76013 74215 53801 78443 103949 186266 1766529 1,766,529
Male 32577 18320 25318 32040 36522 54069 1040968 1,040,968
Source: Concerned NGOs. * Asa, *BURO Bangladesh, Tmss (According to Fiscal year), *Brac, *Caritas,*SSS (Acording to
calender year).*Asa ,*Buro Bangladesh,*SSS (Up to February, 2021),*Tmss(Up to March,2021).

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Bangladesh Economic Review 2021

Grameen Bank 2020, 93.37 lakh poor people of 81,678 villages

of 479 upzilas under 64 districts are involved in
Grameen Bank established as a specialised
the microcredit programme of Grameen Bank.
institution in 1983. Microcredit programme
The bank disbursed Tk. 236853.25 crore until
implemented by the bank for poverty reduction.
February, 2021 and recovered Tk. 222516.35
It works for poverty declination by creating self-
during the same period. The Table 13.10
employment of rural poor women through
describes the microcredit activities of the
providing microcredit to them. Up to December,
Grameen Bank.
Table 13.10: Microcredit Programmes of Grameen Bank

Cumulative
Item 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Up to February 2020
Disbursement 13890.24 16933.15 20789.11 24321.50 17044.92 20501.70 236853.25
Recovery 13534.36 15123.13 18270.13 22559.75 16694.02 20490.03 222516.35
Recovery Rate (%) 98.33 98.82 99.22 99.13 99.03 99.29 95.34
No. of Beneficiary 8681302 8853961 8915491 8986050 9132966 9313513 9394868
Female 8345610 8548060 860989 8689004 8834706 9013762 9090979
Male 335692 305901 305598 297046 298260 299751 303889
Source: Grameen bank

Microcredit Activities of Schedule Banks and 2 public sector specialised banks is presented
in Table 13.11.
The statistics of credit disbursement and recovery
of 4 State Owned Commercial Banks (SOCBs)
Table 13.11: Status of Microcredit Disbursement of SOCBs and Public Specialised Bank
( in crore Taka)
Cumulative
Name of the (Up to
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Bank February
2021)
Sonali Bank
Disbursement 668.99 1063.15 1041.00 1127.00 1187.30 1170.21 442.09 - 18756.48
Recovery 865.72 1166.91 1244.00 1178.00 1316.08 1267.90 552.33 - 20656.47
% of recovery 129.41 109.76 45.00 46.00 46.00 42.52 26.00 - 81.11
No of
245344 262149 229773 208432 291429 311058 109439 - 81,12,095
Beneficiaries
Agrani Bank
Disbursement 778.16 602.00 2120.50 1782.02 898 2748.77 3340.94 4159.00 3233.33
Recovery 830.35 528.00 3051.85 3007.86 996 1767.85 1429.30 3530.10 2034.67
% of recovery 104.03 87.71 74.00 67.00 88.00 64.31 62.00 72.11 58.77
No of
117236 132317 128850 92636 150139 30698 18780 23053 25712
Beneficiaries
Janata Bank
Disbursement 736.48 737.30 751.57 744.80 495.57 751.36 597.77 733.13 345.43
Recovery 525.54 641.35 698.91 691.23 490.23 678.57 570.85 722.42 276.44
% of recovery 71.36 86.99 93.00 58.00 99.00 48.00 51.48 61.07 36.64
No of
245288 548134 104563 551179 552392 753785 554545 547366 2117.20
Beneficiaries
Rupali Bank
Disbursement 16.63 12.17 11.44 19.95 105.50 612.31 44.11 1240.46 1319.40
Recovery 16.68 17.38 15.71 31.30 59.69 293.19 367.78 1299.28 1425.37
% of recovery 100.3 142.81 137.32 166.00 57.00 293.00 368.00 104.74 108.03
No of
13554 15849 15255 14886 30697 34731 35021 38323 42945
Beneficiaries

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Bangladesh Economic Review 2021

Cumulative
Name of the (Up to
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Bank February
2021)
Bangladesh Krishi Bank
Disbursement 73.70 100.49 96.56 57.61 31.15 72.11 44.80 37.82 2026.25
Recovery 51.38 109.37 106.77 52.04 21.13 66.49 27.50 31.35 1776.10
% of recovery 69.72 109.84 111.00 53.17 67.83 92.20 61.38 82.89 87.65
No of
28284 14919 16529 16044 7254 12080 7808 3240 1996725
Beneficiaries
*Rajshai Krishi Unnoyan Bank
Disbursement 39.04 38.23 24.88 12.73 25.67 22.94 22.94 2051.67 2105.11
Recovery 37.03 40.78 29.07 19.09 12.19 8.91 8.91 2142.40 1958.60
% of recovery 94.85 106.67 101.00 82.00 48.00 39.00 39.00 93 78
No of 1260
10480 3832 6695 6253 3930 3930 143168 129074
Beneficiaries 2
Total
Disbursement 2333.00 2553.34 4045.95 3697.22 2743.19 5377.70 4491.44 8222.08 27786
Recovery 2326.70 2503.79 5146.31 4996.51 2885.32 4082.91 2952.83 7725.55 28127.65
(%) of
99.73 98.06 96.22 84.80 105.18 75.92 65.74 93.96 101.22
recovery
Source: Concerned Banks.*Rajshahi Krishi Unnoyan Bank (Up to February, 21)

Microcredit Programmes of other microcredit programmes to reduce poverty and

Commercial and Specialised Banks create self-employment opportunities. The
information of eight commercial banks‟
Except the state owned banks other commercial
microcredit programmes is described in Table
and specialised banks are also carrying out
13.12.
Table 13.12: Microcredit Programmes of other Commercial and Specialised Banks
(in crore taka)

Number of Beneficiaries Disbursement

Commercial and Specialised (Cumulative progress Rate of
Banks Female Male Total up to February, 2021 ) Recovery (%)

Ansar-VDP Unnayan Bank 5,60,285 5,21,170 10,81,455 2409.65 96.47

*National Bank 3,568 77,409 80,977 32,346.63 76.00
Social Islami Bank Limited 11,485 25,568 37,047 207.17 98
*Uttara Bank Limited 1046 15318 16364 3261.22 57.36
BASIC Bank Limited 521972 130493 652465 1095.77 72.20
Total 1098356 769958 1868308 39320.44 -
Source *Uttara bank Limited (Up to February, 2020), * National Bank Limited (Up to December,2020).

Microcredit Programmes of Administrative the society. In order to sustaining the microcredit

Ministries/Divisions programmes for poverty reduction the
government emphasizes on developing small
The government has been implementing
entrepreneurs microcredit programmes of
microcredit programmes by different ministries,
different ministriess/divisions/departments are
divisions and agencies along with various social
presented in the Table 13.13.
safety net programmes to remove poverty from

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 Bangladesh Economic Review 2021

Table 13.13: State of Microcredit of different Ministry/Division/Department

Cumulative
progress
Ministry Department/
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 (up to
/Division Division
February
2021)
BRDB
Rural
Development Disbursement 815.03 884.54 985.88 1065.73 1173.52 1252.26 1282.41 1055.31 18561.08
&
Cooperative Recovery 789.64 816.80 910.42 999.48 1106.12 1138.80 1241.32 1000.74 16966.18
Division Rate (%) 94.00 92.00 92.00 73.00 94.00 75.00 75% 67% 97%
PDBF
Disbursement 599.16 716.82 915.26 956.93 1156.28 1266.50 1309.73 1015.80 12866.04
Recovery 629.15 724.69 946.45 946.09 1178.35 1359.49 1379.86 1104.58 13442.78
Rate (%) 99.00 99.00 99.00 98.00 98.00 97.00 96% 96% 98%
Jatiyo Mohila
Ministry of Songstha
Women and
Disbursement 2.00 9.17 3.01 1.29 1.55 1.53 3.02 3.03 64.161
Children
Affairs Recovery 2.10 7.45 1.66 4.72 5.26 2.4 2.52 4.97 74.691
Rate (%) 105 81 55 365 337 158 133 164 -
*Ministry of Disbursement 3.4 5.56 7.00 7.98 8.61 9.33 9.00 9.00 92.36
Liberation Recovery 9.00 3.25 4.52 8.03 8.79 8.83 10.00 10.00 64.65
war Affairs
Rate (%) 264.70 58.48 64.57 100.62 102.09 59 50.00 50.00 84.00
SERWTCI
Ministry of Disbursement 11.94 10.40 9.35 8.65 7.82 6.42 3.43 2.97 9227.53
Industries
Recovery 11.18 10.46 9.33 105.6 7.81 6.53 3.70 3.10 9148.03
Rate (%) 93.00 100.00 99.00 99.00 100.00 101.00 - - -
Disbursement 7.32 3.02 7.50 6.70 6.79 6.62 - 167.42 3.25
Ministry of
Land Recovery 3.77 1.63 5.67 6.09 6.39 6.25 - 130.16 1.78
Rate (%) 51.50 53.97 75.58 90.90 94.11 94.41 76.10 77.74 65%
Bangladesh Handloom Board
Ministry of
Textile and Disbursement 1.84 2.65 4.03 3.42 4.10 3.60 3.51 0.57 74.593
Jute Recovery 2.66 2.39 3.16 3.43 4.23 3.25 3.56 2.11 60.38
Rate (%) 60.65 62.76 65.65 67.89 70.25 70.70 71.86 72.6 73.05
*Dept. of
Ministry of Youth
Youth and Disbursement - - 97.34 102.65 121.97 138.81 142.94 114.94 2066.38
Sports Recovery - - 89.73 99.29 109.94 117.16 132.91 105.08 1798.08
Rate (%) - - 92.18 96.74 90.12 84.40 92.98 84.75 87.02
*Cotton Development Board
Ministry of Disbursement 1.16 1.25 1.71 1.23 1.27 1.34 1.56 1.66 12.42
Agriculture Recovery 1.22 1.31 1.3 1.28 1.34 1,41 1.61 1.73 11.70
Rate (%) 105.06 104.77 103,96 104.46 104.92 104.59 103.07 104.35 94.20
*Cotton dept. board, Dept. of youth (Up to January,2021), *Ministry of Liberation War Affairs (Up to December 2020).
Source: Concerned Division/Department.

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