Agricultural growth is three times more effective in reducing poverty than that in other sectors. This makes it central to the sustainable development of Bangladesh. PKSF plays a vital role in advancing agricultural development in Bangladesh by financing smallholders and agri-entrepreneurs through its Partner Organizations (POs). It promotes climate-smart agriculture, value chain development, and agro-processing, while facilitating access to technology, skills and markets, enhancing productivity, resilience, and sustainable rural livelihoods. PKSF’s POs now account for around 50% of all agricultural loan disbursements in the country.

Agriculture’s contribution to GDP and employment (global vs Bangladesh)

Agricultural loan disbursement & farmer coverage (national vs PKSF)

PKSF’s agricultural loan features

• Target Groups: Marginal and Small Farmers
• Loan Size: BDT 1,00,000
• Interest Rate: Maximum 2% per month
• Fees/Charges: None
• Tenure: Up to 12 months
• Collateral: Not required
• Grace Period: Up to harvesting time
• Repayment: Single installment after harvest
• Delivery: Through banks and in cash

PKSF’s multi-pronged approach to modern, resilient agriculture

• Locally appropriate, cost-saving technologies promoted by PKSF enhance productivity and reduce the financial burden on smallholders.
• Strengthened agricultural value chains processing, packaging, and quality improvement enable farmers to capture higher market returns.
• Training in Good Agricultural Practices and safe food production enhances long-term sustainability in the agricultural sector.
• Diversification into livestock, fisheries, agroforestry, and agroecological farming enhances income stability and strengthens household resilience.
• PKSF’s partnerships with agricultural research institutions help scale innovations by integrating finance, technology, and knowledge for greater impact.
• Climate-resilient crop varieties supported by PKSF protect farmers against salinity, floods, and drought in an increasingly volatile climate.
• Livestock microinsurance and disaster recovery loans help marginal farmers quickly restore livelihoods aftershocks and emergencies.
• Finance, technology, and value-chain development PKSF is driving a transition toward productive, environment-friendly, climate-smart, sustainable, and market-responsive agriculture.