Introduction: With financing from the International Fund for Agricultural Development (IFAD), PKSF successfully implemented five projects during the period 2003–2025, namely: MFTS, MFMSF, FEDEC, PACE, and RMTP. Through these projects, momentum was created in the rural economy by providing targeted populations with appropriate financial services along with technical assistance, appropriate technologies, and marketing support. Following the recently completed RMTP, PKSF has initiated the implementation of the GREEN Project with financing from IFAD. The project aims to promote the economic development of the ultra-poor, poor, and micro entrepreneurs through financial and technical support, while also working to improve various food systems in an environmentally sustainable manner. The project places special emphasis on poverty-prone and climate change–vulnerable areas (haor, coastal, Barind, and char regions) and is implementing a wide range of development-oriented activities. The project is being implemented through partner organizations. The Financing Agreement for the project was signed between the Government of Bangladesh and IFAD on 29 January 2026 and Subsidiary Loan and Grant Agreement (SLGA) is signed with the Finance Division on 3 June 2026. The project completion date is March 2032.
Project Goal: To contribute to climate-resilient and inclusive rural transformation through sustainable and equitable economic growth.
Project Development Objective: To sustainably enhance the income, climate resilience, food security, and nutritional status of project households by ensuring healthy dietary practices and improved nutrition behaviors, promoting modern technologies and best practices, and increasing access to financial services.
Target Population: The project targets agricultural laborers, artisans, marginal and small farmers, fishing households, other small entrepreneurs, and poor youth communities. Among these groups, the project will primarily focus on three categories of poor people: the ultra-poor, transitional poor, and enterprising poor. A total of 258,000 members will benefit directly from the project.
Project Components: The project consists of three complementary components, as described below:
Component 1: Climate-Resilient and Environmentally Friendly Food System Development
Under this component, ultra-poor, transitional poor, and enterprising poor in selected value chains will be supported to sustainably expand their businesses and increase income. A value chain approach will be adopted to analyze agricultural and non-agricultural (farm and non-farm) sectors. The project will mainly cover crops, high-value horticulture, poultry and livestock, fisheries, and rural non-farm sectors. This component is divided into three sub-components: Development of climate-resilient and environmentally friendly food systems in disaster-prone areas; Nationwide development of climate-resilient food systems; and Development of environmentally friendly food systems and creation of public awareness for healthy and nutritious food.
Component 2: Inclusive Financial Services for Value Chain Participants: The objective of this component is to ensure easy access to credit based on the business needs of project participants. It comprises four sub-components: Financial inclusion of the ultra-poor; Seasonal loans (Sufalon) for agricultural and non-agricultural businesses; Regular microcredit (Jagaran) for agricultural and non-agricultural businesses; and Provision of microenterprise loans, including start-up capital loans, to support enterprise expansion.
Component 3: Institutional Capacity Building of Implementing Partners: This component aims to strengthen the capacities of PKSF and partner organizations (POs) in climate change, environmental management, and food system development. It has two sub-components: Capacity building of implementing partners in food system development; and Capacity building of partner organizations in inclusive financial and non-financial services. Key activities include training of officials, application of information and communication technology (ICT), improvement of the policy environment, and organization of experience-sharing exchange visits.
Project Duration: The project is designed for a total duration of six years, from 2026 to 2032.
Budget and Financing: The total budget of the project is USD 211 million, of which IFAD financing amounts to USD 70 million. The remaining funds will be contributed by PKSF and partner organizations. From IFAD financing, the Government will provide USD 5.6 million as grants for value chain activities and institutional capacity building.