This program aims to alleviate poverty by creating sustainable employment through the development of microenterprises. Having recognized that poverty cannot be eradicated sustainably without generating sustainable employment, and that enterprise development is a key area for job creation in this densely populated country, PKSF launched the Microenterprise Development Program in 2001. This Program was later renamed ‘Agrosor’.
PKSF’s microenterprise development activities have expanded significantly across the country. The World Bank has recognized PKSF as the largest microenterprise-financing institution in the world.
Under ‘Agrosor’, any business with an investment of up to BDT 1.5 million (excluding land and infrastructure) is eligible for financing. An entrepreneur can avail a loan of up to BDT 1.0 million under this program.
As of June 2024, the cumulative amount of financial services provided under ‘Agrosor’ from PKSF to POs was BDT 160.69 billion and from POs to borrowers was BDT 2394.11 billion.
‘Agrosor’ also conducts the financing components of similar projects i.e. Sustainable Enterprise Project (SEP), Recovery and Advancement of Informal Sector Employment (RAISE), and Microenterprise Development Project (MDP). Additionally, funds received from the Government of Bangladesh are used under this program.
Loan Disbursement (from PKSF to POs): In FY 2023-24, BDT 22.42 billion was disbursed from PKSF to its POs under ‘Agrosor’. Of this, BDT 16.10bn was disbursed as Agrosor loans, BDT 0.07bn as Agrosor-SEP loans, BDT 0.17bn as CSL-SEP loans, and BDT 6.08bn as Agrosor-RAISE loans.
Loan Outstanding (of PKSF with POs):
POs owed PKSF BDT 43.15 billion in ‘Agrosor’ loans. Of this, BDT 27.61bn was under the Agrosor, BDT 0.12bn under the ME–GoB, BDT 3.11bn under the Agrosor–MDP, BDT 0.99bn under the Agrosor–SEP, BDT 0.48bn under the CSL–SEP, and BDT 10.84bn under the Agrosor–RAISE loan programs.
Loan Disbursement (from POs to Borrowers): In FY 2023-24, BDT 450.24 billion was disbursed from POs to borrowers under ‘Agrosor’. Of this, BDT 435.58 bn was under the Agrosor loan program, BDT 4.35 bn under the Agrosor–MDP loan program, BDT 2.64 bn under the Agrosor–SEP loan program, BDT 0.30 bn under the CSL–SEP loan program, and BDT 7.37 bn under the Agrosor–RAISE loan program.
Loan Outstanding (POs with Borrowers): As of June 2024, the amount of loan outstanding of POs with borrowers under ‘Agrosor’ was BDT 318.42 billion. Of this, BDT 308.51 bn was under the Agrosor loan program, BDT 3.50 bn under the Agrosor–MDP loan program, BDT 1.63 bn under the Agrosor–SEP loan program, BDT 0.17 bn under the CSL–SEP loan program, and BDT 4.60 bn under the Agrosor–RAISE loan program.